Stablecoins are digital currencies designed to battle the volatile cryptomarket by establishing a coin that can undergo conversion into other currencies with a fixed rate. The most infamous one is Tether, currently the 10th most traded digital currency all over the world by market volume. Nevertheless, Tether has encountered a lot of issues ranging from transparency to accusations in manipulation. Other stablecoins that have emerged to take Tether’s place are GUSD, presented by the Winklevoss brothers, PAX, and TUSD.
According to Tan, stablecoins facilitate the transfer of funds across the ecosystem of digital currencies at a stable rate, and the whole world is talking about it, even adding that there are more use cases and ways to apply this phenomenon. The Australian businessman states that the stablecoins have the potential of luring in both retail and institutional financiers, although it has been around for quite some time.
CoinJar is also planning to consider the potential of floating a stable currency, despite the fact that the cryptomarket already has numerous actors in that circle. Tan also added that there are numerous Australian stablecoins already in place, and it is merely a question of how to leverage them for an improved customer experience for the clients of CoinJar.
For the majority of financiers considering the stablecoins, the attraction is the chance to take part in the activities of the digital currency market with no exposure to the severe fluctuations that are attached to it. For the remainder, it is the wish to utilize digital currencies as a medium of exchange and not merely a speculation object, which BTC currency is infamous for.