Even though cryptocurrencies have been around for a decade as a term that started out with the birth of Bitcoin (BTC), crypto assets still appear to be the subject of controversy for many, especially for institutional investors, which in a way prevents the cryptocurrency market from showcasing its full potential, while blockchain, on the other hand is booming.
However, stablecoins, a type of digital assets similar to cryptocurrency seem to be more accepted in terms of having a payment medium that is in theory and practice backed by other fiat values such as the US dollar as in the case with Tether (USTD), one of the most famous stablecoins in the market.
As giants like IBM and JPMorgan are showing their interest in stablecoins and blockchain technology, stablecoin may lead cryptocurrencies closer to mass adoption, also helping shape the future of digital money.
How Stablecoins Might Lead to the Revolution of Digital Money
Stablecoins are different from other cryptocurrencies available in the market because these assets are collateralized, which means that stablecoins are backed with actual fiat currencies such as the US dollar.
Thanks to the similarity to cryptocurrencies, stablecoins enjoy the perks of decentralized ecosystems based on blockchain technology, that way having the ability to move monetary value as quickly as information is moved on the internet.
However, what stablecoins have that other cryptos lack is stability, scalability and redeemability.
What makes stablecoins as attractive, attributing these digital assets as the future of digital money, is the fact that major companies like IBM and institutions like JPMorgan are showing an increased interest in stablecoins, while there are already 120 different projects that could be categorized as stablecoins in the cryptocurrency market.
Moreover, in the case of JPMorgan and their lately announced stablecoin, the currency that JPMorgan is working on won’t be issued as an ICO, making it a private medium of payment for JPMorgan’s partners and clients.