Greetings to all the readers here,
I have a lot of friends who deal in stock market and they are good at trading. But when I ask them why they were away from crypto they say that it is not legal. And I am going to talk about something related to it because I was reading an act that recently passed in USA by President Donald Trump. The act is known as the Genius Act and what this act basically does is it legalizes the use of stablecoins which is a big thing.
There has been a debate in the last few years where people have shared their views that how these stablecoins are not really stable and that they are not legal and they can crash anytime. But after getting the legal status from Genius Act that was signed by President Donald Trump last month in July I think that fear is gone among people and now a legal status to stablecoin will help people bring towards crypto.
We have to understand that not every stablecoin is legalized but only those stablecoins are legalized that follow few rules. Like there is a rule of keeping 100 percent dollar or dollar equivalent reserve to the amount of stablecoin.
Then there are some registered companies under which they should come. Obviously if any stablecoin is in the market they have to reach out to them in order to get the legal status. And lastly they have to follow the anti money laundering rule so that people using it will be safe from bad activities.
The good thing is that the stablecoins are no longer in the grey area where people used to think so many times before using them. Now it has a legal status and we all can use it.
Now obviously this was a big step towards crypto adoption and the existing crypto users like me and you might get excited about this act. But will this act actually bring the real adoption to the crypto market Will it bring adoption of cryptocurrencies in real world That is something we will discuss in this vlog.
While it might feel that the US is finally ready to use cryptocurrency in day to day life the reality is not close to that because when it comes to using cryptocurrencies first you have to learn to use them.
And the reality is that most of the people who are in the crypto industry right now are there to invest and earn money. Either they are long term investors either they are traders or either they are simply someone who is trying to make money trying to gamble around and see if it works for them.
So I strongly believe that the real adoption will only come when people will start looking these stablecoins or cryptocurrencies as something that can be used to trade things from the market real market and for that they have to educate themselves. For right now the tools that we use to interact with the cryptocurrencies are quite complicated.
I know if you are reading it you might feel that they are not complicated but it is because you already know how to use it. For someone who is new to the crypto and stablecoins they might not be able to use the Web3 wallet properly.
They will first have to learn what are the trusted Web3 wallets then they have to learn about the key phrases then they have to learn about the usage how to use it then they have to learn about the network selection because when they are paying money they have to make sure that they are paying to the right network.
For example if someone has a stablecoin at BNB they cannot scan a QR code which is of Ethereum chain because that will end up losing money. So all these things are something that people have to keep in mind before they start using crypto as a real world thing. And I think most of the people right now are unaware of these things because they are simply in the market to make money as a trader or investor.
Even after all these hurdles and these things, the fact is that this genius act will help crypto get adoption. If not today maybe in next few years because it has given a green light to stablecoins and even the cryptocurrencies.
And I think maybe in next few years we are going to use them for real world use case. But for now the people using it are not ready to go by that path. Maybe the future participants will learn about the real world practical use and they will use it for the things related to real life like traveling to a place or buying a burger or something like that.
So you can tell me what are your thoughts on the Genius Act if you have gone through it already. If not I have actually explained the act to you in this blog. I have tried my best to do so. And if you think I have missed something you can add on to it in the comments.
THANK YOU
