Crypto Industry Betting Big on Stablecoins’ Future
A stablecoin is a new blockchain-enabled type of coins that are characteristically pegged to stable real-world assets, from commodities to currencies. It wants to enable users to purchase one stablecoin for a dollar, and also be able to redeem it later for the same price. This aims to eliminate the notorious crypto price fluctuations.
The stablecoin industry became popular after 2018’s crypto crash which saw cryptocurrencies like Bitcoin and Ethereum losing 80-90% of their capitalization within a year.
As traders started introducing digital currencies as one of their payment methods, they encountered a problem which is price fluctuation.
It is said that every new player in the stablecoin market is coming with their audit reports, a record that verifies that the company that intends to issue its stablecoins has sufficient assets to back them. Some coin projects have even introduced features that allow them to freeze coins to tackle money laundering acts.
With all these, what do you think the future will look like for stablecoins ?