While many people see stablecoins as an oasis of stability in the volatile cryptocurrency market, cryptocurrencies, There's a disturbing aspect: the ability of certain entities to digitally lock or freeze these assets at any time. What was conceived as a tool for rapid, borderless transactions ultimately remains under the control of organizations that can decide who can and cannot use their money.
There are plenty of examples. Tether (USDT) and USD Coin (USDC) have locked millions of dollars in specific addresses, Whether by government order or suspicion of illegal activity. Interestingly, this power isn't limited to extreme cases. In theory, any user could be affected if their account is blacklisted, without warning and without the possibility of recovering their funds.
The problem is bigger than it seems. As regulators seek more control over cryptocurrencies, Stablecoins are no longer as “neutral” as many believe. So if you're seeking financial independence, this is a reminder that not all cryptocurrencies are created equal. And that, in a world where decentralization is key, relying on an asset that can be censored might be too high a risk.
PREPARE YOUR WALLETWhy are stablecoins at risk of disappearing?
For about 5 years now, Governments have tried to legalize and regulate cryptocurrencies Due to its increasing use by users as a payment and investment method and the adoption of businesses for the convenience of their customers.
Many authorities have highlighted that Cryptocurrencies can be used by criminal organizations for money laundering, drug payments, human trafficking, and tax evasion. This is not entirely false. However, we are faced with an endless discussion of opinions and counter-opinions that not only extend to the legal realm, but also involve the vast interests of enormous financial companies that have seen how digital assets have become the move in transoceanic operations, where commissions can reach up to 45 or 50% of the total value of transactions in return for 0,5 or 5% of operations on the blockchain.
Today Stablecoins USDT, TUSD, FDUSD, USDP, AEUR, DAI, UST, PAXG, and USTC are about to be blocked in Europe.. Binance, the world's largest cryptocurrency exchange, announced that it will stop offering support for these digital assets, as they do not comply with MiCA regulations (Regulation on Cryptoasset Markets) in the European Economic Area (EEA).
This decision was announced by Binance in a publication, in which it highlights that the measure will begin to apply on March 31, 2025 and that its goal is to adapt to regulatory requirements. This involves the elimination of stablecoins not compatible with MiCA in the EEA.
To avoid losing their investment, Binance has encouraged EU users who own these assets (those on the USDCoin (USDC) or Eurite (EURI) blockchain) to exchange them as soon as possible.
The first is USDC, a stablecoin created by the Circle company which is positioned as the second most valuable in the market among this type of digital assets, and EURI was developed by Banking Circle SA, a renowned financial institution based in Luxembourg.
The detractors
The list of detractors and opponents of Bitcoin and the rest of the cryptocurrencies, which include stablecoins, is long, very long. In the private sector, we can mention that in 2018, Jamie Dimon, CEO of the American bank JP Morgan, called BTC a "fraud for the unwary." He backed up these statements by claiming that its primary uses were related to organized crime in areas such as money laundering, drug trafficking, and tax evasion.
The American stockbroker and economist Peter Schiff; the CEO of the Royal Bank of Canada, David McKay and journalist, economist and winner of the Nobel Prize in Economics (2008) Paul Krugman hold a similar opinion.
On the side of the authorities and the public sector, the Securities and Exchange Commission or United States Securities and Exchange Commission It was headed by Gary Gensler until January 2025. This executive was a staunch enemy of BTC and brought numerous cases involving blockchain financial products to court.
Along with Gensler, Senators Jack Reed, Laphonza Butler, Cynthia Lummis, and Colin Allred, among others, have raised their voices to stop the advance of decentralized finance (DeFI) and pass harsh laws on all crypto products.
Today, Hester Peirce leads the SEC And, although he hasn't made any further statements on the matter, he has said that the United States' view on cryptocurrencies "will change course." Remember that this position is appointed by the US president with the advice and ratification of the Republican-majority Senate. In addition, Elon Musk, one of the biggest investors in cryptocurrencies, is his closest advisor.
INVITE AND WINThe future of the crypto world
In U.S. It is almost impossible to define a future not only for cryptocurrencies, but for the economy in general. With the so-called President Trump's "tariff war" and Peirce's statements It seems that cryptocurrencies could be an investment vehicle and a hedge against the 40% probability of a recession predicted by several entities such as JPMorgan Chase for this year.
In Europe the outlook is calmer. Although these 9 stablecoins are heading for an imminent crash, the future of the crypto market is marked by factors such as regulation, adoption by recognized institutions and asset tokenization, topics where progress has been made in accordance with clear MiCA standards that appear to seek to strike a balance between fostering the innovation of blockchain technology and gain access to DeFi, while ensuring investor protection.
