Top Real-world applications of Stablecoin in 2023

Cryptocurrencies have taken the world by storm after the introduction of Bitcoin and Ethereum. Though many crypto giants have invested in cryptocurrencies over the past decade, a few hesitate to put their money in crypto assets due to the predicament of volatility. This is where stablecoin comes into the picture. Stablecoins are digital assets that come along with the best aspects of cryptocurrencies combined with the stability of FIAT currency.

As it became the need of the hour to find a solution that can handle the high volatility of cryptocurrencies, entrepreneurs have started investing in the creation of stablecoin and that’s why they feel a need to hire a seasoned stablecoin development company. If you have no idea about how to create a stablecoin conveniently, then you must rely on the experts. However, before moving further, it is crucial to understand the real-world applications of the stablecoin.

Real-world Applications of Stablecoins

The below-listed are some noteworthy real-world applications of Stablecoins: 

Stablecoins help businesses recover from local currency crashes

If fiat currency suddenly crashes in value, then local residents of a country can easily exchange the crashed money for USD-backed, EUR-backed, or asset-backed stablecoins before losing their savings.

For example- Venezuela, a country in South America, faced hyperinflation in 2018. The prices of various goods had doubled at that time and people were not even able to afford food as their savings became worthless. The usage of Stablecoins at that time could have been an ideal solution. People could have replaced their dropped currency with a stable currency.  However, not many of them are still aware how to create a stablecoin so they choose the best crypto coin developers around them.      

Stablecoins could be used for day-to-day purposes

People can use stablecoins like other currencies for daily-based purposes. From buying morning tea to making online transactions, a digital wallet could be used to pay with stablecoins. The usage of stablecoins could also be beneficial while making cross-border payments as users don’t need to convert various fiat currencies. 

For example- People in European countries could receive USD-backed stablecoins without converting them into Euro. This is the reason behind the rising demand for a reputed stablecoin development company. 

Stablecoins could be utilized to simplify recurring and P2P payments

Stablecoins enable the usage of smart contracts that don’t need any intermediator or central authority to execute. Such automated transactions are transparent and irreversible and are ideal for rent payments, loan payments, salary, and subscription payments.

For example- An employer can automatically transfer stablecoins as a salary to employees by deploying smart contracts. It could be helpful for organizations with multiple branch offices across the world. The usage of stablecoins would not only reduce the high transaction fees but also eliminate the hectic process of exchanging fiat currency from one bank account to another.  Therefore, big businesses are in favour of hiring a stablecoin development company that can fulfil the rising demand for stablecoins appropriately. 

Stablecoins can enhance the usage of cryptocurrency exchanges

The online space is filled with a plethora of crypto exchange platforms but only a few of them support fiat cryptocurrencies due to strict rules and regulations. The usage of stablecoins could help crypto exchanges overcome this problem by providing crypto-fiat trading pairs.

For example- Crypto traders could use USD-backed stablecoins instead of using actual dollars while crypto trading. The process of obtaining cryptocurrency will become easier for new crypto traders which will lead to increased adoption of cryptocurrency trading. Isn’t is arousing your interest to learn more about the best stablecoins in circulation?

Top Stablecoins in the Crypto Market

The following are some popular stablecoins available in the crypto market:

• Tether(USDT)

Tether is the first stablecoin issued on the Bitcoin Blockchain which has been adopted widely by many crypto users since its inception. Currently, it is available to trade on many cryptocurrency exchange platforms. Every unit of Tether is supported by a US dollar held in the Tether Limited Reserves.

• USD Coin(USDC)

USDC coin in ERC-20 token which is pegged 1-1 to the US dollar. It is one of the competing stablecoins launched by CENTRE- a consortium founded by Coinbase and Circle. USD coin gathered $132 million in the market cap just after the official launch in the crypto market.

• bitCNY(BUTCNY)

It is based on the Chinese Yuan built on the BitShares Blockchain. It is a market-pegged asset available in different versions such as bitUSD and bitEUR. The minimum collateral for bitAssets is 2x. For instance, if you want to put BTS of $200 into the contract, then you have to borrow $100 bitUSD.

• TrueUSD(TUSD)

TrueUSD is a transparently verified, completely collateralized, and legally protected USD-backed ERC20 stablecoin protected by third-party audits. It is the first crypto asset developed on the TrustToken platform. TUSD ensures 1:1 parity using TrustToken’s smart contracts.

Conclusion

The focus of crypto giants was always been on finding a less volatile and more liquid digital asset and the arrival of stablecoin has fulfilled their requirements. Stablecoin is considered the holy grail of the crypto market in the current scenario. However, creating one from scratch is a challenging and time-consuming task. Thus, it is recommended to hire a stablecoin development company like Antier for getting detailed information about how to create a stablecoin.