An Insight into Stablecoins: The Price-stabilized Currency
possesses the potential to disrupt nearly every industry. Among its
myriad use-cases, the blockchain technology is poised to create a new
and better global payments system that is decentralized, secure,
transparent, fast, and leverages cryptocurrencies as a means of
the value of most cryptocurrencies is subject to daily fluctuations.
While these digital currencies aim to fuel more secure transactions,
their value is based on speculation. The volatile nature of
cryptocurrencies can be comprehended from the fact that many crypto
traders became millionaires overnight, only to find out that they
lost much of their wealth the next week due to huge price variations.
This is where stablecoins come to play. Stablecoins are gaining rapid traction worldwide since their values are pegged to other assets like US Dollar or gold. This has led to a subsequent increase in the demand for stable coin development services.
the world homes 180 currencies – such as the US Dollar, Euro, Yen,
and more – that are recognized by the United Nations. Across the
global economy, these currencies are used to purchase goods and
services. Despite fluctuating exchange rates, inflation, and other
factors, the value of fiat currencies is vulnerable to minimal
fluctuations daily. This is why the economies count on these
government-issued currencies for operation.
imitate these conventional, stable currencies.
are cryptocurrencies that are collateralized to the value of
underlying assets that vary from coin to coin. Many stablecoins are
pegged at a 1:1 ratio with fiat currencies, like the US Dollar, Euro,
and more. Other stablecoins are pegged to commodities like gold or
are immune to price volatility that affects other cryptocurrencies.
For example, in 2010, a programmer purchased a pizza for 10,000
Bitcoins, which was approximately equivalent to $30. The same amount
of Bitcoins is priced at approximately $80 million at the time of
this writing. All this is a result of a drastic change in the price
is due to these price fluctuations that some businesses are skeptical
of cryptocurrency as a means of payment. Microsoft started accepting
Bitcoin as a payment in 2014 but put a temporary halt on it due to
on the contrary, offer the best of both worlds – transparency,
immutability, security, fast transactions, privacy and low fees of
cryptocurrencies along with price stability of fiat currencies.
have the potential to benefit a multitude of industries and
individuals who have to make international payments – from big
businesses seeking a more efficient and cheaper way for cross-border
payments to migrant workers who want to send money to their families.
In both cases, people need not be concerned about sending a
speculative asset that might plummet in value the next day or maybe
the next hour.
the unbanked population residing in the areas with an uncertain
economy can transact using stablecoins. It enables the use of a
global currency that is not subject to local laws and regulations.
also benefit the financial services ecosystem. By enabling a secure
and stable decentralized system, these digital currencies bring
advantages to cross-border P2P lending and financial planning. With
stablecoins, the lending platforms can drive reliable P2P
transactions, eliminating the need to use a volatile cryptocurrency
can benefit all of the crypto market participants, including
investors, traders and blockchain-based enthusiasts. Besides,
stablecoins can provide crypto holders with a safe haven in case of
market crash, enabling them to instantly convert their
cryptocurrencies into stablecoins, without having the need to convert
their capital into fiat currency.
are still in their nascent stage, and so are stablecoins. Although
stablecoins have a long way to go before they potentially reach
maturity, the adoption that they are gaining and thus the increasing
demand for stable
coin development services
cannot be overlooked.
is not easy to anticipate what the future unveils in the constantly
evolving blockchain world; however, stablecoins could help
cryptocurrencies gain mainstream adoption. The value and stability
that stablecoins offer to businesses and individuals worldwide, by
enabling global access to national currencies, could be disruptive.
If you are planning to build a stable coin to tap into the billion-dollar stable crypto market, Antier Solutions can help. We are a well-thought-of stable coin development company, possessing real-world experience in stablecoin development. We offer a host of offerings – from stablecoin development to white paper creation and coin marketing – to help you accomplish your goals and drive your business growth.