Those of you familiar with the wider cryptocurrency market are aware of centrally managed stablecoins — cryptocurrencies that are pegged to a reference asset such as the U.S. dollar. Examples of these are Tether (USDT) and USD coin (USDC) and there are others like Paxos and DAI but the two former appear to be the most widely used. Speculators often use them for trading bitcoin, but there are other applications for stablecoins that may be unknown to most.

Use cases of stablecoins include lower-cost, low-volatility, real-time payments that are competitive compared to what consumers and businesses experience today with fiat currency. They could also make it cheaper for businesses to accept payments and easier for governments to run conditional cash transfer programs (including sending a universal basic income).

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