stablecoins might bring cryptocurrency to the mainstream

‘Stablecoins’ Estimated to Bring Cryptocurrency to the Mainstream

Cryptocurrencies, News

stablecoins might bring cryptocurrency to the mainstreamExperts believe that stablecoins, digital tokens designed to provide measurable security and stability, are estimated to bring cryptocurrency to the mainstream, providing it is associated with traditional currency.

Charlie Clarence-Smith, cryptocurrency assets expert at the international law firm Pinsent Masons, believes that fiat-collateralized stablecoins are capable of bridging the gap between emerging crypto-assets and traditional fiat currencies. By bridging the crypto and fiat currencies, stablecoins could pave the way for providing businesses and consumers with cheaper and quicker ways of transferring value without the challenges that are associated with the cryptocurrency market.

Stablecoin startup partners with IBM

Stablecoins have been hitting the crypto headlines recently when an FDIC-backed Stablecoin launched in partnership with IBM. Known as USB Anchor, the new stablecoin, which is backed by the U.S. Federal Deposit Insurance Corporation (FDIC), is the latest initiative developed within the crypto market, which links digital currency with fiat currency.

USB Anchor has been launched by the cryptocurrency startup Stronghold. Stronghold is collaborating with IBM to look at ways in which the stablecoin can be utilized into systems used by IBM’s financial sector clients.

According to Clarence-Smith, Stronghold’s new product is an example of a fiat-supported USD stablecoin, as the value of the tokens is linked to the value of the US dollar.

Stablecoin is a concept that has been much talked about in the crypto-asset market, so it is exciting to see a real example emerge. Interest in stablecoin stems from the fact that liquidity concerns are eradicated, and from the principle that the coin’s value mirrors that of the fiat currency. Furthermore, stablecoins are transferred on a blockchain rather than using traditional payment schemes,” Clarence-Smith commented.

Bringing cryptocurrency to the mainstream

Stronghold confirms that its new stablecoin product is designed to streamline efficiency within the crypto-asset market.

The aim is to experiment with ways for financial institutions and other organizations to achieve faster, safer and more efficient transaction processing and money transfer throughout the world’s economy,” said Stronghold.

The crypto-asset expert believes IBM’s involvement with digital coinage is testament to how technological corporations are looking for innovation within the cryptocurrency market and are finally taking blockchain technology seriously.

Such growing collaboration between traditional financial fiat currency, cryptocurrencies and some of the world’s leading technological organizations, marks a positive sign that cryptocurrency may be slowly edging towards the mainstream.

However, some within the industry remain skeptical that mass adoption of crypto and blockchain technology will happen any time soon.

As former Wall Street executive and financial expert Mike Novogratz says:

“You won’t see mass adoption until the user experience does not feel like something new and that is still five to six years away.”

Gabrielle Pickard-Whitehead is a freelance journalist and copywriter based in the Peak District, UK. Since 2006, Gabrielle has followed her passion for writing and has sculptured a rewarding career out of her love for the written word. Gabrielle thrives on creating compelling content related to current affairs, politics, financial news and the latest advancements in technology and innovation. Gabrielle is excited about having the chance to write about the constantly-evolving world of crytocurrency and enabling people to learn more about this rapidly-advancing digital asset.

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