Asians Are Reportedly Using Stablecoins To Lend Money To One Another, Bloomberg Reveals
The finance world has been revolutionized by digital assets and the underlying technology.
More and more institutions have understood that it’s better to ride the innovation wave rather than just ignore it, and they hopped into the crypto wagon.
For instance, Ripple has been trying to fix the flaws that are plaguing the traditional payment system SWIFT, and the firm managed to be successful in doing this.
For this reason, more financial entities have switched from SWIFT to Ripple’s services in order to be able to offer their clients fast, cheap, and more secure cross-border payments.
Crypto visionary Rune Christensen appears on Bloomberg and exposed the viewers to some pretty vital concepts about decentralized finance and how this actually works.
The key to bringing crypto to the masses is stability
Daily Hodl reveals that the founder of MakerDAO began by revealing the key to making digital assets relevant to the mass population: this is stability.
Such an element would be able to allow cryptos to become involved in daily transactions without people fearing that they would lose all their money instantly.
The man’s company issues DAI which is the very first decentralized stablecoin on the Ethereum blockchain.
This uses smart contracts in order to respond to market dynamics and effectively eliminates volatility and produces a crypto that can be used by merchants, businesses, and the general public for daily use cases.
Christensen stated the following:
“The main thing about a stablecoin is, of course, that it’s stable. And the reason why that’s so important is because you need stability if you want blockchain technology and you want crypto to actually be relevant to regular people and businesses because the volatility that you see in something like Bitcoin simply doesn’t work in everyday life.”
He also brought up Facebook’s Libra: “There are a lot of stablecoins out there issued by companies. I think because something like if you look at Facebook’s Libra, you look at Binance stablecoin – the thing about these stablecoins is that they’re all issued by a particular brand.”
Head over to the Daily Hodl’s original article in order to learn more about what he had to say.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.