Crypto Industry Is Positive On The Future of Stablecoins

By Kapil Gauhar

Stablecoins are not exhilarating as theoretical assets, particularly because their backers supply only the portion which they can back against a stable real-world asset. They are very attractive tools when it is about retaining the merits of blockchain-based payment networks for hedging and remittance.

The institutional gamers have started realizing the true potential of stablecoins. As of last month, the total investments made into these stablecoins has reached $3 billion, according to a crypto research group, Stable Report. It has prompted the introduction of more than 120 stablecoin projects this year.

For example, Winklevoss Twins launched a stablecoin for their Gemini bitcoin exchange in September month. A Goldman Sachs-backed crypto group, Circle, also partnered with the US bitcoin exchange, Coinbase, to launch a USD Coin.

Nearly every single player in the stablecoin industry is coming up with a record verifying that the company which plans to issue its stablecoins has enough assets to back them. A few coin projects have even come up with the features that allow them to freeze or delete the coins to tackle money laundering acts.

In the meantime, popular stablecoin project Tether has garnered a lot of criticism for denying to get its balance-sheets audited by an individual party. It has helped a whole new competition to flourish in the response incorporating more modern stablecoin projects such as Paxos, TrueUSD and Maker, in addition to USD Coin and Gemini Dollar.

As & when the regulatory watch improves and firms start taking due diligence seriously, then the coming year may prove to the year of stablecoins. Advocates have faith that almost all the traditional industries would wish to integrate a stablecoin solution in the long term.

The social media giant Facebook has dependably made an announcement about introducing a stablecoin to power P2P payment on its WhatsApp messenger.