Stablecoins, rather than cryptocurrencies, could be the future of money

December
18, 2018

4 minutes of reading

Opinions expressed by Business owner the contributors are theirs

While the cryptocurrency market is trying to find a fund after losing more than 80% of its value from its peak since the beginning of the year, stablecoins are gaining more attention due to their ability to store value and volatile noises. Currently, stablecoins represent the fastest growing market within the cryptocurrency space, with several important coins of this type launched in recent months.

The payment industry is perhaps the main beneficiary of this emerging market. Stablecoins allow traders and consumers to rely on balanced prices that are not affected by the high volatility of the encrypted market, as these currencies are anchored to real assets, particularly the US dollar. Bitcoin has also been designed as a safe and fair means of payment, but has failed to bring utility in the context of payments. In recent years, hundreds of new coins and tokens have been issued by various entities, but most of them have been subject to the same volatility risks.

Stablecoins worth the clamor?

Stablecoins are hybrid cryptocurrencies because they are blockchain-based units that are also backed by legal currencies or commodities, and this is why they provide the benefits of cryptic and fiat currencies. Thanks to their stability, stablecoins represent the ideal tool able to connect countless internet and blockchain ecosystems with traditional economies. These coins help users simplify payments through automation while ensuring liquidity, security and transparency.

Most blockchain ecosystems are still struggling to become more interconnected with traditional banks, but the latter seems to have difficult obstacles in many jurisdictions. To avoid the difficulties caused by banks, cryptographic companies can rely on stablecoins.

This is also the recommendation of the Prime Minister of Malta Joseph Muscat, who recently spoke a lot about the stablecoin in an article by Lovin Malta: "Obviously we will not intervene in banking policies because they have to deal with issues such as correspondent banks and risk assessments. Our job as a government is to create this new market and not let a vacuum form in. Some platforms are already banking in cryptocurrencies and new sectors have been created, such as stablecoin, which are considered safer ".

Judging by the potential impact they can have on blockchain ecosystems, stablecoin are definitely worth it – right now it's not just speculators.

The stablecoins supported by the USD are dominating this sector: you will find Tether's USDT, Circle & # 39; s USDC, Paxos Standard Token or TUSD in the list of the best cryptocurrencies for market capitalization. However, some companies choose to break the stereotypes and develop new forms of stablecoin that incorporate even more functionality.

The concept of smart money remains a topic of conversation, for example, as discussed by Coinbase's operations manager Asiff Hijri, who recently he said on Twitter at the Money 20/20 conference that, thanks to stablecoin, money became programmable for the first time in history. "[Stablecoins] it will unlock the ability to create programmatic money applications like we've never seen before, because now money is truly programmable, "the COO noted.

To validate the potential value of the stablecoin, the encrypted exchange Binance has just announced in a rather tempting way that the stalemate of the USD currency of Circle, the USD currency, will now be listed on the stock exchange. It is a listing resource for several new trading pairs in its combined listing of the Stablecoin (USDⓈ) market. The exchange announced this in an official post published in this article by the Binance support site.

Stablecoins is yet another mega-trend these days, and they are committed to disrupting the payment industry, e-commerce operations, salary and rent payments, asset management and credit markets, among others. So the future of money could belong to stablecoins, rather than cryptocurrencies as everyone has speculated.