Stable coins in transition: Bye Tether, hello Facebook and J.P. Morgan Coin | BTC-ECHO
This transformation process is mainly due to the new stable coin generation, in particular Facebook and J.P. Morgan, initiated. These new stable coins will be integrated into existing ecosystems with an existing user base and existing business case. In the future, the large platforms will process a large proportion of the transactions via their own stable coin. In addition to a massively improved processing speed of all payment processes and the costs can be significantly reduced.
Termination model national currencies?
While German Facebook users pay with Euro, British with Pound and American with US Dollar, in the future a majority of all payments will only be handled by one cryptocurrency. The creation of a global private-sector crypto-monetary union makes currency management obsolete. Also, platforms and companies can use a stable coin to integrate additional features known as utility tokens into their token economy. For example, those who pay with the platform's own stable coin can benefit from better conditions. For example, J.P. Morgan automatically pass on transaction cost savings to its business customers, so that both sides benefit.
Due to the fact that stable coins do not necessarily have to represent a single asset, more complex constructions can be represented. For example, if Facebook does not want to rely solely on the stability of the US dollar, it can issue a stable coin based on a basket of currencies. A stable coin, whose value is composed of different currencies, can theoretically guarantee more independence from the underlying. The imagination knows no limits.
Things are getting tight for the old stable coin generation
However, this development also shows that for the first asset-backed generation of stable coins ergo tether or Pax, it should be difficult to assert oneself in the long term. While they provide virtually no decentralized benefits, they are players like Facebook or J.P. Morgan clearly inferior. The majority of investors and traders will be a regulated, established and much higher capitalized company like Facebook or J.P. Better trust Morgan to ensure the coverage and value stability of a stable coin than a scandal-crypto start-up like Tether.
So it would not be surprising if in the future stable coins from established banks and companies prevail over stable-coin crypto start-ups.
It depends on the niches and cooperations
Things are different for stable coins, which are not based on centrally managed coverage of the deposits. Decentralized stable coin concepts such as the MakerDAO certainly have a chance of finding their niche in the crypto-ecosystem in the future. Strategic partnerships with well-known service providers can also help to find use cases for stable coins. It is no longer just about trading functions for active stockbrokers.
The US Dollar-covered stable coin from the well-known Winklevoss Gemini, Gemini Dollar (GUSD), is being supported by the payment service provider Flexa. Flexa, in turn, allows a range of service providers to immediately accept cryptocurrencies such as Bitcoin, Ether or even the Stable Coin GUSD. As announced this week, customers include the well-known coffee house chain Starbucks. For the time being only in the US, Starbucks customers can pay for their coffee with crypto-US-Dollar. The incentive for companies is not lacking. Finally, they can significantly reduce their transaction fees through these crypto payment options.
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