USDC(Stablecoins)👉🏻 Bankfalls 👉🏻FED Regulation 👉🏻 CBDC

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USDC
USDC - US, peg lost
Price is recovering and is now $0.95

This happened because Silicon Valley has a big problem, i will not go into details of this problem and how much collateral is lost.

The fact is that the price of USDC was dropping to $0.86 and the price has not recovered yet to 1$


I am writing this post on Sunday because tomorrow is Monday and there will be an emergency FED meeting and the most interesting


Scenarios :

1. the USDC is recovering and all is well, but confidence in this stablcoin is lost. Because, I will note so far the price has not recovered, ok there is a liquidity gap in steiblocoin pairs, but here is a different situation.


2. What if the price doesn't recover

What to do?

-Where to move to USDT?
There is a scenario, when most of people go to USDT and then collapse the exchange rate of USDT (apocalypse Scenario).

- Go to cash

- Speculative option (not financial advice)
Short USDCUSDT using Bitcoin Inverse contract with 1x leverage. The underlying asset for collateral will be BTC and the trading pair will be to the dollar.
Of course you will pay a funding.
If BTC goes down, we will have a profit from the short that will compensate for the downside movement. If it goes up, and since the underlying asset is BTC, then at closing the position the price in dollars will be exactly the same.

We can look at the chart of the UST
The decline to 0.65, recovery to 0.92 and then you see what happened.



Of course, these are two different companies, different approaches, different backgrounds.
USDC is much more serious
But if you have some large part of the USDC you decided to speculate and earn 10%+ and you are not calm,
shouldn't you just get rid of that asset without putting your deposit at great risk.

Any Stablecoin is now a risk you take on yourself.



Considering perfect storm scenarios.

And where it all goes, and the direction this CBDC is headed .

As the
FED says it doesn't see any advantage in digital assets

Why the Fed hates cryptocurrencies and especially stablecoins

cnbc.com/2021/07/16/jerome-powell-promotes-cbdc-digital-dollar-warns-against-stablecoins.html

Required reading👆🏻

Many banks involved in cryptocurrency transactions were caught
twitter.com/EXCAVO/status/1634844057422950401?s=20


What's next
This is probably the first time you will see this company

FedNOW - is a service developed by the Federal Reserve for depository institutions in the United States. It will allow individuals and businesses to send instant payments. Banks will be able to create products based on the FedNow platform. FedNow is scheduled to launch between May and July 2023.

In this case you don't need banks when you have a FED _federal reserve system account

FedNOW will provide the end user wallet in FED

"A dollar in CBDC form is a liability of the central bank. The Federal Reserve has to pay you back."

The plan became clear?

This is all to finish off both banks and most of the crypto market will be the regulation of the cryptocurrency market

I'm all about regulation in this article 👇🏻

The show must go on



Tomorrow is Monday, opening of U.S. markets, urgent Fed meeting, it will be fun.

I want to add a positive, if there will be a collapse, and it will happen sooner or later, we will see on the market will be inefficiencies on which arbitrage teams, and other market participants will be able to make big money. Our team has been tracking some inefficiencies since 2019 the result was on the falls in March 2020 and May 2021.

What will happen to bitcoin. We can see that when the USDC went down the price of bitcoin relative to it became higher than to the pair USDT. Bitcoin is digital gold, at the beginning of the digital age.

Crisis is always a time of opportunity.


Best regards EXCAVO

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ملاحظة

In 2008 when Fed tried to save economy by helping first victims mbs brokers/banks market popped on open and than dropped heavily for weeks, until Fed started extraordinary cutting rates.
If Feds steps in its declaration of huge systematic problem!
if all this stuff is god damn real, don't rush, don't gamble with predictions, volatility will remains super high, and we will see +5 /-5% nasdaq moves in hours. So just be ready and when the new hit the market bet HUGE, easiest money ever for traders.