According to the project managers of Fidelity Labs, Circle and MakerDAO, dollar stablecoins attract new users to the cryptocurrency market and improve the work of organizations.
They stated this at the Blockchain Summit conference in Los Angeles, discussing the opportunities and prospects for stable cryptocurrencies. Director of product development at Fidelity Labs Raghav Chawla Believes that stablecoins linked to Fiat currencies simplify transactions for ordinary users and large businesses, eliminating the need to contact banks or other intermediaries. According to Chawla, people consider the state currency a reliable means of saving, so they trust stablecoins backed by Fiat currencies more, since their exchange rate is more stable compared to decentralized cryptocurrencies.
According to Joao Reginatto, head of product development at Circle, the launch of the USDC stablecoin in 2018 contributed to the influx of new users into the cryptocurrency industry, providing protection against the volatility of crypto assets. In turn, the head of the business development Department of the Maker Foundation, Greg Di Prisco, said that MakerDAO began to interact with the center consortium in order to “lure” more users to stablecoins. At the same time, the center focuses on converting Fiat currencies into stablecoins, while MakerDAO focuses on cryptocurrency loans.
Reginatto stressed that stablecoins are increasingly being used for commercial payments, B2B payments, and international transfers. However, stable cryptocurrencies still have a lot of untapped potential, so you need to look for new ways to use them in business. According to reginatto, stablecoins can improve the efficiency of interaction between organizations, But in the coming years they may have serious rivals – state cryptocurrencies from Central banks.
Last month, the European Central Bank (ECB) proposed not to use the concept of “stablecoin” for crypto assets backed by Fiat currencies, as it considers them insufficiently safe for investors. In addition, the ECB recently named four conditions for launching a state-owned cryptocurrency and has already applied for registration of the”digital Euro” trademark.