Cryptocurrency is still volatile, and can provide stable market stability market needs.
4 minutes read
The views expressed Pioneer Shareholders are their own.
While the foreign exchange market is trying to find a bottom after losing more than 80 per cent of its value since the peak of the year to date, stabilizers are more interested in their ability to store value and smooth volatility. At present, it is the fastest-growing market environment within the vulgar currency area, with many major currencies of this type being launched in the past few months.
The payment industry may be the main beneficiary of this emerging sub-market. Stablecoins enables traders and consumers to rely on balanced prices that are not affected by the large volatility of the encoder market, as these currencies are linked to real assets, especially the US dollar. Bitcoin was also designed as a safe and fair payment method, but failed to bring interest in the context of payments. In the last few years, hundreds of coins and new symbols have been issued by various entities, but most of them have been exposed to the same volatility risks.
Are Stable Worth the Fuss?
Stablecoins are hybrid cryptocurrencies because they are blockchain-based modules that are also supported by paper currencies or commodities, which is why they provide the benefits of both currency encryption and fiat. Thanks to its stability, stablecoins represent the perfect tool that can reach countless Internet and collective ecosystems with traditional economies. These currencies help users facilitate payments through automation while ensuring liquidity, security and transparency.
Most collective ecosystems continue to struggle to become more in line with traditional banking, but the latter seem to have strict barriers in many jurisdictions. To avoid the difficulties caused by banks, companies that rely on encryption can rely on stable.
This is also the recommendation of Prime Minister of Malta Joseph Muscat, who recently spoke about Stable in the Leuven Malta article: "Obviously we will not interfere in banking policies because they have to deal with issues such as correspondent banking and risk assessment. Some platforms operate in banking, and new sectors are being developed, such as stable sectors, which are seen as safer. "
Judging by the potential impact that can be brought to the blockchain ecosystems, the stabilizers certainly deserve a bang – at this time not only speculators.
Dollar-backed stability companies dominate this sector, with Tether's USDT, Circle's USDC, Paxos Standard Token, or TUSD in the list of the highest-value currencies encoded by market value. However, some companies choose to break stereotypes and develop new forms of stabilizers that include more features.
The concept of smart money remains the subject of conversation, for example, as discussed by the operating officer at Coinbase Asiff Hijri, Said on Twitter At Money 20/20 conference, thanks to stable funds, funds became programmable for the first time in history. "[Stablecoins] Will reveal the ability to create financial software applications such as we have never seen before because the money is now truly programmable, "noted the operations manager.
In order to prove the potential value of stable markets, Binance has announced a trial exchange only in fairly breaking news, which will include the US currency in US dollars on the exchange. It is the parent of many new trading pairs on the Stablecoin Compact Market List (USD). This bourse was announced in an official publication published in this article from the Binance Support website.
Stablecoins are a huge trend these days and are committed to disrupting the payments industry, e-commerce, pay and rent, wealth management, lending markets and more. So the future of money may belong to stability, rather than being forgiven as everyone expected.