Stablecoins have recently become a relatively serious topic in the cryptocurrency community. There has been speculation that the Securities and Exchange Commission (SEC) focused on them after suggesting that some of them may be securities.
The head of Facebook cryptocurrency division insists BTC is in the best position to fight inflation
Due to the fact that stablecoins are gaining in popularity this year, there are also a lot of important questions. As we recently reported, one of them was asked by Brian Armstrong of Coinbase when he asked on Twitter if stablecoins were suitable for fighting inflation.
If fiat-covered stablecoins really become inflationary coins (not so stable), then how do we get a really stable coin? Maybe it should be something that uses oracles to track a basket of real-world goods (purchasing power parity)? Ideas welcome “
And, as expected, a lot appeared in the conversation notable reactions, including the response of Jack Dorsey (a big BTC fan), who, like some others, believes that BTC is a “fix”.
Similarly, the head of Facebook cryptocurrency division, Davic Marcus, expressed the opinion that although stablecoins are absolutely relevant for payments, BTC is the best choice against inflation.
“I think stablecoins will be great for payments (high speed, in and out when you need to make a payment). In my opinion, BTC is the best answer to ensure inflation. “
The acceptance of stablecoins is still growing, what is the driving factor?
Stablecoins have already found a number of uses, including: currency for transferring value between exchanges, collateral for use on derivatives exchanges, a means of exchanging and storing value in DeFi, currency for cross-border payments.
This was noticed by Ryan Watkins of Messari when he decided this year to develop the factors that influence the adoption of stablecoins. The volume of stable coins has recently reached $ 120 billion and the market continues to grow significantly. The use of stable coins has increased so much that users have made more than $ 1.7 trillion in transactions in the second quarter.
There are a number of factors behind this growth, some of which include the ease with which they can be accepted, due to the fact that only a public blockchain and address are needed. Another plus is the fact that stablecoins run on a 24/7 infrastructure, so they are cheap, affordable and reliable to use.
Moreover, as noted by Ryan Watkins;
“They offer users stronger autonomy, privacy and interoperability than existing payment solutions, which require KYC and often restrict access. They are programmable, which allows developers to easily build and deploy applications with global distribution. ”
Due to minimal volatility, stablecoins have the potential to move cryptocurrencies into the mainstream. In addition, many of us prefer to pay for stablecoins and BTC prefers to go with the prospect of further price growth.