The potential use of stablecoins is quite vast to what we know today, said Asher Tan co-founder of Australia-based cryptocurrency exchange ‘CoinJar‘, according to the Australian Financial Review reports. The comments were made when the co-founder described the stablecoin as the game changer in the cryptocurrency market.
Cryptocurrency gave birth to stablecoin as a way to combat vitality in the cryptocurrency market. The stablecoin works as a token that is convertible to other tokens, however, at a fixed rate. One of the most famous stablecoin is Tether, which is the tenth most transacted cryptocurrency across the work by market volume, as reported by CoinMarketcap.
It was not easy for Tether to achieve the position that it enjoys in the cryptocurrency market. It had faced a number of issues that ranged from manipulation allegation and transparency. Taking the advantage of the same many stablecoins were introduced as a replacement to Tether. These stablecoins includes Winklevoss twins owned Gemini USD, and True USD and Paxos Standard.
Tan said that the stablecoins are in demand and everyone is talking about it because it provides people with the ability to transfer money through the crypto infrastructure at a stable rate. Tan is not an active participant of CoinJar but his comments hold value for the entire crypto market. He said that in the future stablecoins may come up playing different roles in different sectors.
Tan supported his statement saying that stablecoin have already attracted retail and institutional investors whose interest is expected to multiply over the time. Tan said that there is so much hype about stablecoin in London as people from the financial sector seems to allot attracted to it. Forex traders or people with around 10-20 years of experience at the Forex are trying their luck at stablecoins. The scope of stablecoins is promising and this is one of the main reasons why many people from the traditional financial sector are shifting to it.
Taking the advantage of great popularity that stablecoins enjoy in the crypto market, CoinJar is considering floating a stable currency. However, there are already too many players in the segment which is discouraging the exchange, Tan said in the report. He further said that there are three or four Australian stablecoins already. Utilizing the already available stablecoins would be the best thing. However, it is important to explore the ways by which the stablecoins could be used to bring out the best user experience for the customers of CoinJar.
Stablecoins are being looked up as the safest opportunity to invest in the crypto market by many investors. Investors are eyeing stablecoins as a way to ditch the vitality of crypto market. On the other side, stabelcoins are also being viewed as a medium to use cryptocurrency as an alternative to Bitcoin.
Tan explains while some use Bitcoin for speculation, there are a good number of people who use it as a medium to exchange and store value.