{"id":127333,"date":"2025-04-17T00:20:54","date_gmt":"2025-04-17T00:20:54","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=127333"},"modified":"2025-04-17T00:20:54","modified_gmt":"2025-04-17T00:20:54","slug":"stablecoins-dominance-due-to-limitations-of-us-banking-jerald-david","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=127333","title":{"rendered":"Stablecoins&#039; dominance due to limitations of US banking  \u2014 Jerald David"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsStablecoins rose to popularity as a result of limitations in the US financial system \u2014 particularly restricted banking hours and the lack of a non-USD trading pair, according to Jerald David, president of Arca Labs.<br \/>\n\u201cSo we start thinking about the reason why, we start talking about the nine-to-five banking hours,\u201d David said during a panel at TokenizeThis 2025 event on April 16.<br \/>\nThe panel discussion centered on yieldcoins or, essentially, the rising of cryptocurrencies that can generate yield through holding, staking or lending, like stablecoins.<br \/>\n\u201cWell, nine-to-five banking hours don\u2019t work, right? There are implementations right now of payment systems that are going to come to market very soon, that are a good combination of both yield-bearing instruments as well as stabletokens,\u201d David said.<br \/>\nAccording to David, the need for stablecoins stems from the fact that the traditional US banking infrastructure doesn\u2019t support round-the-clock transactions. \u201cAnd this industry, as we all know, is a 24-hour industry.\u201d<br \/>\nKYC for stablecoins<br \/>\nKnow Your Customer procedures were a significant topic at the panel. One representative from Figure Markets said that everyone who owns a yield-bearing stablecoin would have to be KYC-ed for tax reasons.<br \/>\nBut David pointed out that stablecoins have several use cases beyond yield generation, including payments. \u201cUsing this stable token to buy a cup of coffee is not something that really should require AML or KYC for somebody.\u201d<br \/>\nNick Carmi, head of exchange at Figure Markets, suggested that part of the solution could be a trust-based KYC system that allows users to carry their credentials across platforms. KYC is a process used by financial institutions to verify a user&#8217;s identity. It&#8217;s meant to prevent fraud, money laundering, and other illegal activities by ensuring users are who they claim to be.<br \/>\nCurrently, users must complete separate KYC checks for each financial institution or service they use, creating friction and frustration \u2014 especially for those navigating multiple platforms or exploring different crypto ecosystems.<br \/>\nMagazine: Bitcoin payments are being undermined by centralized stablecoins<a href=\"https:\/\/cointelegraph.com\/news\/dominance-of-stablecoins-limitations-us-banking-jerald-david?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsStablecoins rose to popularity as a result of limitations in the US financial system \u2014 particularly restricted banking hours and the lack of a non-USD trading pair, according&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/127333"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=127333"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/127333\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=127333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=127333"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=127333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}