The Role Of Stablecoin In Remittance Services

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INTRODUCTION

Stablecoin play a vital role in remittance service today, that's not really much of a serious considering the nature of stablecoin which is pegged to an underlying asset, stable cryptocurrency has its value tied to a stable coin usually the USD and ofcourse this fiat currency is stable thus helping stablecoin maintain its value.

I will discuss on some key points on how stablecoin plays a role in stablecoin in my article today.

• COST EFFICIENCY

Stablecoin offers cost efficiency in that it ensures lower transaction fees in remittance services when compared to the service offered traditionally in it's remmitance service which are considerably higher due to presence of third parties so the use of stablecoin in remittance ensures that no third party is needed and this helps to cut down on the cost of carrying transactions.

Also when dealing with some individuals in their respective countries one might need to deal with them by first converting funds to their local currency which creates too much exchange of currency but stablecoin removes the need for this conversion which ofcourse also comes with it own fees, stablecoin remove this and save cost as well.

• SPEED

Another great role of stablecoin in remittance services is that it ensures for swift transaction, removing the delays often experienced in traditional remittance services, stablecoin facilitate an almost instantaneous payment delivery making it more suitable in remittance services.

So the fact that stablecoin is a crypto asset too which means it operates on blockchain allows it to handle thousands of transaction in mere second, so yes faster transactions is one key role of stablecoin in remmitance service.

• ACCESSIBILITY

Inother to reach a wider audience then one really needs to use stablecoin and it's use in remittance services ensures that everyone could enjoy and access remittance services despite wherever you are and it doesn't matter if it's a remote area or not, stablecoin ensures global reach of remittance services ensuring that everyone is involved.

Yes for a fact stablecoin create financial inclusion, bringing people from less developed places who still have internet access an opportunity to participate in remittance services and be inclusive in the financial system just a mobile device and internet access would suffice and one can enjoy remittance services which could not be said for traditional remittance services.

So stablecoin helps ensure wider reach on the global stage while creating financial inclusion.

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• STABILITY

Just like fiat stablecoin are also stable relative to the asset they are pegged with and today the most used currency and the dominant accepted almost in every trade in the financial market is the Us dollar and most of these stablecoins are pegged to it really which ensures it remains stable amidst it's use in the financial market.

The cryptocurrency market ordinarily is a rather volatile market driven by speculation often we experience rapid price swings affecting prices of asset and those invested in them, rest assured stablecoin is different from other cryptocurrency as it is being pegged to a strong currency the Us dollar this means it remains stability amidst the craziness of the cryptocurrency market thereby making it suitable for use in remittance services and attractive.

• TRANSPARENCY AND SECURITY

The use of stablecoin in remittance services helps to ensure minimal or no fraudulent activity, blockchain ensures full transparency meaning everything we do here are easily verified and clearly audited without any discrepancies or inconsistency often witnessed in traditional remittance services.

Because of blockchain's transparency it's makes it ideal for people to trust stablecoin in remittance more since not only is the details transparent but blockchain ensures for an even greater and robust security making fraudsters think twice before thinking of breeching.

So stablecoin offers security and transparency in remittance services as another role of stablecoin.

CONCLUSION

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All this great benefits or key roles of stablecoins in remittance services makes it rather ideal to be used in remittance services as the benefits are clearly evident and would be insane if we don't choose it over traditional remittance services overtime, since security and transparency plus high transaction speed at Lowe fees are guaranteed with stablecoin.