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RE: Is Basis Stablecoin the next Crypto Failure?

in #cryptocurrency7 years ago

Hi @karamyog! I am happy to see you brought up the issue. Yes, it has less meaning for investors as stablecoins do not increase their prices. I think fundamental concept is to allow the masses to adopt the coin, but it has more personal agenda. Creating stablecoins is almost a situation where you have created a mirror of the currency that represented that nation. By tapping into the nation's currency, you gain funding, support, wealth etc. It is a win-win situation as many sees it (both the creators and the adopters). Adopters have an ease for digital currency exchange and stablecoins are doing their job. Hence stablecoins may one day replace the role of banks in money regulation, that is cryptocurrency. Stablecoins are nothing but money exchangers and while they can be many of them, holding their coins bear little additional value.

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Ok, now i see the incentive for issuers and those VCs. Thanks, that was very helpful.

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