The future of
The good news is that there is a solution that could disrupt and “stabilise” the cryptocurrency market. This solution is already in use. We are talking about stablecoins.
What Are Stablecoins and Why Should You Care?
When it comes to
The stability of this new digital coin is made
Now imagine a cryptocurrency supported by the British Pound. That would be one of the most stable cryptocurrencies we have seen to date. This is the concept behind the future of stablecoins. Add in smart contracts, which are utilised in stablecoin transactions and you have a digital coin, investors, institutions, and even governments can get behind.
Cryptocurrency and Blockchain Utility Reapplied
One of the biggest issues we have seen when it comes to cryptocurrency is peering coin with blockchain utility. The utility, or practical use of blockchain technology. is of serious interest to businesses in just about every industry. From reality to financial, blockchain technology and the utility it provides can reshape the way people do business locally and globally.
In the past, tethering cryptocurrency to that utility was challenging for businesses, because of volatility.
But with stablecoins, the value of the transaction stays intact. In some cases, a stablecoin can be a 1:1 exchange with a fiat currency. Precious metals such as gold or silver can also be used to stabilise a digital coin. The future of stablecoins is secure and infinite in more ways than one. This makes it more than enticing for businesses.
Now you may be wondering about decentralisation. Yes, stablecoins do stray from the path of true decentralisation, something that continues to be echoed from the crypto enthusiasts mountain tops. But as a crypto enthusiast myself, and someone who interacts with businesses regularly in the space of cryptocurrency and blockchain, we believe it’s worth it.
Facebook and Others See the Value in Stablecoins
Seeing the value of implementing a stable cryptocurrency is not something for a small group of crypto enthusiasts. Stablecoins are actually becoming a real solution for financial corporations like Visa and Mastercard, as well as social media giant Facebook.
In fact, Facebook has been developing a payment platform, Project Libra, with a fiat-backed
This is a cryptocurrency
Using Facebook as a medium, over 2 billion people in the world can exchange money for just about anything (legal). It is also rumoured that transaction fees could be as low as 2 per cent for merchants. This should certainly be a cause for concern for PayPal and card networks throughout the world.
Stablecoins Are the Future of Cryptocurrency and the Future Has Arrived
Setting up a global payment web, like Facebook plans to do, would simply not be possible if cryptocurrency volatility was still an issue. Luckily for Facebook, Visa, Mastercard, and about a million other businesses,
About the Guest Author
Stan Stalnaker is the Founding Director of Hub Culture, a social network service that operates Ven, the only digital currency to thrive on a basket of commodities currencies and carbon futures, making it the world’s first green monetary system. A leader in the market, Ven is a stable digital currency, recognized by global financial markets and indexed by Thomson Reuters.
Disclaimer: The opinions expressed in this article are those of the guest author. They do not necessarily reflect the opinions or views of Bitcoin UK.