It seems the need for the [Hive Backed Dollar](https://inleo.io/@leoglossary/leoglossary-hive-backed-dollar-hbd) (HBD) becomes more evident each day.

We discuss the importance of this [coin](https://inleo.io/@leoglossary/leoglossary-coins) on a regular basis. To me, it is vital for the future.  What we are dealing with is an [algorithmic stablecoin](https://inleo.io/@leoglossary/leoglossary-algorithmic-stablecoin) that is provides people with the opportunity to not have their [money](https://inleo.io/@leoglossary/leoglossary-money) controlled.


The most recent actions of Circle, the company behind USDC is very telling about the future.  While nobody is sure why the actions was taken, I will lend my hypothesis to the situation.  We will also highlight how this radically differs from the offering of HBD.
 
https://cdn.coingape.com/wp-content/uploads/2020/03/23164424/Webp.net-resizeimage-8.jpg
[Source](https://coingape.com/why-circles-usdc-is-best-placed-to-challenge-tethers-usdt-stablecoin-dominance/)

## Wall Street Takeover


Before getting into the [speculation](https://inleo.io/@leoglossary/leoglossary-speculation) of what is taking place behind the scenes, let us look at the action of Circle.


The [company](https://inleo.io/@leoglossary/leoglossary-company-business) announced that it is no longer going to have individual or consumer accounts.  According to an [article on Coingrape](https://coingape.com/circle-announces-termination-of-individual-accounts-by-end-of-november/),


>Circle, the [stablecoin](https://inleo.io/@leoglossary/leoglossary-stablecoin) issuer, revealed its plans to terminate individual or consumer [accounts](https://inleo.io/@leoglossary/leoglossary-account) by November 30. 


It goes on to say:


>However, it’s crucial to note that [business](https://inleo.io/@leoglossary/leoglossary-business) and institutional [Circle](https://inleo.io/@leoglossary/leoglossary-circle) [mint](https://inleo.io/@leoglossary/leoglossary-mint-currency) accounts are exempt from this change and will continue to function.


To me, this is becoming abundantly clear.  For years I hypothesized that [USDC](https://inleo.io/@leoglossary/leoglossary-usd-coin) would end up in the hands of [Wall Street](https://inleo.io/@leoglossary/leoglossary-wall-street).  It seems that forecast is coming true.


While my view was that a JPMorgan or [Goldman Sachs](https://inleo.io/@leoglossary/leoglossary-goldman-sachs) would simply buy Circle, it is now clear that one step is to give them control over the supply of the token.  According to this move, only businesses and institutions (most likely meaning [banks](https://inleo.io/@leoglossary/leoglossary-bank)) will have the ability to mint USDC.


No longer will the average person have the ability to create money in the form of USDC.


And so it begins.


## The Need For HBD


Many are speculating what is behind the move.  My guess is that we are seeing the creation of money handed back to the banks.  It is likely [individual accounts](https://inleo.io/@leoglossary/leoglossary-individual-account) will be banned by regulation.  This is how the [government](https://inleo.io/@leoglossary/leoglossary-government) will keep control on Wall Street.  After all, this is the main motivation by people like Gensler.


Since Wall Street is hijacking much of [cryptocurrency](https://inleo.io/@leoglossary/cryptocurrency), it is crucial to have an alternative.  HBD is exactly that.


Many of us speculated that HBD is going to be banned from exchanges, at least in the Western countries.  There is no way that [regulation](https://inleo.io/@leoglossary/leoglossary-regulation) doesn't forbid algorithmic stablecoin.  It is low hanging fruit for the regulators.  


For that reason, HBD will exist only within [decentralized finance](https://inleo.io/@leoglossary/leoglossary-decentralized-finance-defi) (DeFi). [liquidity pools](https://inleo.io/@leoglossary/leoglossary-liquidity-pool-lp) and [decentralized exchanges](https://inleo.io/@leoglossary/leoglossary-decentralized-exchange-dex) are the future.


What is also part of the future is that anyone can mint HBD.  This is done in two ways:


A) An individual places HBD in savings, generating new [coins](https://inleo.io/@leoglossary/leoglossary-coins) every month.  This is going to be enhanced when time vaults are coded into the base layer.


B) The [conversion mechanism](https://inleo.io/@leoglossary/leoglossary-conversion-mechanism-hive) can be utilized to convert HIVE-to-HBD, reducing the former while increasing the latter.


Both of these options are open to anyone with a Hive account.  Unlike Circle, we are not seeing individuals limited in their capacity.  This means we are dealing with something that is [market](https://inleo.io/@leoglossary/leoglossary-market) driven as opposed to USDC which will be completely at the mercy of institutions.  Even if the market says it wants more USDC, if the institutions opt against it, that is the decision.


This is likely insight into what is coming.  Companies that are running stablecoin operations will be forced into something like this.  After all, government can control a few institutions much easier than millions of people.


## Eliminating Points of Vulnerability


The key going forward is for the industry to keep eliminating points of vulnerability.  What Hive is doing is creating some resiliency.


We all know there are areas where the Internet, in general, is apt for control.  This copy machine has basically become a centralized [technology](https://inleo.io/@leoglossary/leoglossary-technology) with a handful of major technology companies running everything.


That said, our quest is to work on eliminating the exposure.  When it comes to stablecoins, we can see how USDC took a step back.  It was not the medium of freedom to begin with since it was run by an individual company.  We are now seeing further evidence of where this is heading.


HBD is an oasis in this.  Since it is tied to the Hive blockchain, the [counterparty](https://inleo.io/@leoglossary/leoglossary-counterparty) in this equation is the network.  No single point-of-failure, i.e. corporation, exists.  There is also the ability for anyone to transact without fear of being blocked.  Finally, as we stated, individuals have the ability to increase/decrease the supply of the stablecoin.


This is something that will not be present with USDC in a few weeks.


It is a move that makes HBD stand out even more.


___ 

[What is Hive](https://inleo.io/@leoglossary/leoglossary-what-is-hive)

 

Posted Using [InLeo Alpha](https://inleo.io/@taskmaster4450/circles-move-shows-why-the-world-needs-hbd)