What's The Deal With All The New Stablecoins?
In the current state of things, there are over 100 stablecoins in existence. If we look back to this time last month there was around half of that month according to a recent analysis by Edan Yago, an entrepreneur on the blockchain.
Backed by traditional stable assets such as gold or the USD, stablecoins are quick to emerge as a useful alternative for volatile digital currencies offering all the benefits of virtual currencies while providing the stability required for use as an everyday currency. These unique attributes have ended up with a big interest within the sector for new projects emerging on a weekly basis.
Earlier this week, Novatti Group, an Australian online payments processor revealed what is expected to be very first stablecoin built on the Stellar network.
The blockchain entrepreneur has spoken on the matter and has said:
âThe incredible growth seen in stablecoin projects, and the amount of money in the stablecoin ecosystem, has taken everyone by surprise, but itâs a clear indicator of a strong need and desire for cryptocurrencies with low volatility. We can look forward to seeing many more projects emerge in this space over the coming months, catering to many different types of customers and use cases. Weâre truly entering an age of digital financial revolution, but there is still more work to be done. The next stage in the development of the stablecoin space is to build a unified, decentralized ecosystem. For stablecoins to reach their true potential, we need to ensure interoperability so users of any stablecoin will be able to spend their money anywhere, with any merchant, for any purpose.â
In the analysis, it suggested that the stablecoin community is currently looking to form partnerships and believe that collaboration will be vital in order to receive a mass adoption of the technology.
Over 80% of respondents believe that collaboration between stablecoin projects will be greatly beneficial for an industry that more than 40% will be worth over $100 billion in up to five years. 65% identified industry partnerships as an immediate priority for their projects.
This week, two of the largest cryptocurrency companies from the US, Circle and Coinbase, joined forces to establish more regulations in the rapidly evolving stablecoin landscape.
As reported by CoinJournal:
âThe startups announced a joint-venture known as the CENTRE Consortium which they say aims at speeding up adoption of cryptocurrencies backed by government currencies.â
What are your thoughts? Let us know what you think down in the comments below!