Stablecoins are becoming so popular that they could bring about the mass adoption of Bitcoin.
The mounting interest of big companies in stablecoins was underscored in a recent Binance Research report. According to the report, these companies are already developing other blockchain-based crypto assets. Therefore, they are incorporating the blockchain technology into their payment systems and digital wallets.
Cryptocurrency News Today – Samsung and Facebook are getting involved in the stablecoin craze
According to the study, the payment and crypto industry worldwide could be destroyed by Stablecoins which are newly minted by large companies. Let us assume the consequences if Facebook starts making use of its planned digital coin for payment across WhatsApp, Messenger, and Instagram.
The report figured out the limitations of stablecoins. For instance, the Facebook coin will be developed and managed by a central authority, and its ledger will be changeable, unlike the Bitcoin technology. Users will definitely be asked to link their Facebook identity to their wallets.
The report specified four scenarios which are;
- Private with no central authority: the blockchain would be unchangeable but there would be a litigation system or an insurance mechanism in order to avoid fraudulent practices.
- Private with central authority: the blockchain would be changeable (for instance Facebook would be in control of most nodes) and would ultimately be utilized as an accounting system to prevent the issues of double payment.
- Public with no central authority: all transactions would be public and the blockchain would be unchangeable.
- Public with central authority: blockchain would be changeable with transactions being public.
Stablecoins are now becoming very easy to trade. Stablecoins plan to reduce price volatility by attaching to a fiat currency or an exchangeable commodity such as industrial or precious metal.
The report shows that there is a growing number of stablecoin-related projects entering the market with more products and services, promising to expand the popularity and use cases of stablecoins all over the world.