Stablecoins are a particular category of cryptocurrencies. Given their characteristics, stablecoins will play a vital role in the future. Moreover, they could even restore some color to the dollar, which has been somewhat abused lately.
Stablecoins could benefit the dollar.
Brian Brooks is the former CEO of Binance. US. As a reminder, Binance.US is the American subsidiary of Binance, the largest crypto platform in the world. Recently, Brian Brooks spoke about the potential of stablecoins. In particular, he addressed the subject of regulations, a topic that is more than topical in 2023.
Some see the arrival of regulations with a dim view. Indeed, they fear that it will constrain the domain too much. On the other hand, the rules are eagerly awaited for others because they will further secure the crypto environment. This is also the opinion of Brian Brooks. On the CNBC channel, he declared that the regulations will make it possible to boost “demand.” In addition, for him, stablecoins will be able to promote the adoption of the dollar at the international level. A welcome boost for a currency losing its notoriety in more and more countries.
“If only the US government could create a regulatory framework that would allow the dollar to support stablecoins in a regulated way, that would allow demand to flourish. (…) This would be good for the adoption of the dollar globally (…). The demand for stablecoins is a way of reviving the dollar at a time when governments worldwide are looking to decouple from the dollar. (…) It is really an important political problem. It is not only about cryptos but especially about the role the United States will play internationally. – Brian Brooks, former CEO of Binance.US
Stablecoins on the rise
Stablecoins are cryptos that have a stable price backed by fiat currency. Currently, most stablecoins are backed by the dollar. Concretely, this means that the price of a stablecoin always remains close to a dollar. Stablecoins are, therefore, different from classic cryptos because their price is protected against volatility.
Currently, the main stablecoins in order of market capitalization are:
- Tether (USDT), 3rd crypto in the world with 76 billion euros;
- USD Coin (USDC), 6th crypto in the world with 23 billion euros;
- Dai (DAI), 15th crypto world with 4.8 billion euros;
- Binance USD (BSUD), the 24th crypto in the world with 3 billion euros;
- TrueUSD (TUSD) the 25th crypto in the world, with 2.7 billion euros.
As mentioned above, the largest stablecoins are therefore backed by the dollar. This is also why Brian Brooks said that stablecoins can be used for the dollar.
0 Comments