The introduction of stablecoin will mark the success of the crypto industry
The introduction of stablecoin will mark the success of the crypto industry
What is the best thing that the cryptocurrency ecosystem could do to ensure its global success? Increase the dominance of stablecoins.
Anyone who disagrees can with Emin Gün Sirer, CEO of AVA Labs, the company behind the Successful avalanche protocol , the business insider said that stability has to prevail in the world of decentralized currencies to be attractive for the general public.
stablecoins will be the next big thing
I Speaking of to Business Insider Emin Gün Sirer that the real success of cryptocurrencies will come as a social phenomenon if a stable coin bound to Fiat becomes No. 1 Coin after market capitalization.
"We are far from finished until number one is coin is a stablecoin. This is my indicator of real success."
tether (USDT) is now the most important stable coin in the crypto world. Its market capitalization is around $ 69,600 million and thus occupies 5th place on the list of the most valuable cryptocurrencies.
5 places below are USD Coin, a stable coin managed by Circle and Coinbase with a market capitalization of $ 32600 million, but with a friendlier relationship with the US regulatory authorities.
Emin Gün Sirer expects the use of stablecoins, especially for defi users, will increase. The advantage of these coins would be precisely that the users could control the value they would act.
"People want to borrow money and they want there to be more stable coins, so I expect the bonds of the world, the circles of the world, grow - and it will be really exciting."
The ugly page
Although cryptocurrencies were the idea of Cypherpunts who were looking for a way to escape the traditional financial system, StableCoin emitters used all decentralized cryptocurrencies and used them to build a bridge to the old financial system.
In general, a Fiat stable is completely covered by cash, cash equivalent or assets that guarantee that every token meet a certain Fiat money unit-imagine a dollar for 1 USDC token, 1 euro for 1 Stasis or 1 gram of gold for 1 digix.
However,This situation means that stable coins tend to depend on a centralized unit. Usdt, for example, is controlled by Tether Inc, USDC by Circle, Busd von Binance and DAI by a decentralized autonomous organization.
In addition to the philosophical problems mentioned above, the centralization of stable coins is a weakness that a Stricter regulatory system -and even state control. Circle already has frozen USDC token and wallets put on the black list to correspond to the law, tether juicy penalties. Stablecoins similar treatment as for traditional banks .
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