Stablecoins: The Foundation of the Next Generation of Global Payments

[Localhostspeed]

They help reduce costs while making global transactions faster and more accessible.
Although regulations are still evolving, stablecoins are already playing a significant role in digital finance and are expected to become even more important in the coming years.
What do you think?
Will stablecoins become the standard for international payments?
Which stablecoin do you trust the most, and why?
I look forward to hearing your opinions and experiences.

Crypto is supposed to be alternative for payments, to be better than traditional payments but with the things that are happening in the stable coin, I don't think they are going to be standard for international payment. Why should I use something that the owners are going to restrict me from using it. The reason why many people are like stablecoins is because they are frustrated with the way centralized platforms are doing them but stable is the king of centralization.

I use stable coins for payment, they are quick and fast but their policy or I don't know if they have mode of operation, they can seized your coins at any time and they are government compliance, they can do and undo this is why many people don't like them. If I'm going to make payment in a place where they are going to take everything from me, I will not use it and it can't be international.

[zasad@]

I believe that stablecoins are the most frequently used cryptocurrency and the reason is because they are considered to be stable, many crypto holders would rather hold their coins for profit and use stablecoins for their day to day transactions because they are not volatile like crypto coins. People who likes to spend their cryptocurrency are more comfortable to spend stablecoins despite all the risks that comes with them, they are centralized which means they can be frozen, they are no different from spending fiat except that they are in crypto form. I see the spending of stablecoins increasing more than Bitcoin in the near future and it is already happening, Bitcoin would overtake them sometime in the future but because it is seen more as a store of value than digital currency to spend, stablecoins like USDT and USDC will continue to dominate for a very long time.

You write about crypto users' personal preference for stablecoins, but if you look at global payments statistics, the share of stablecoins in this sector is less than 1%. Due to country-specific restrictions and the lack of clear global regulation, this service will develop slowly. The adoption of stablecoins on the global stage will depend on the policies of large international players.

But even if those stable coins only have small share, but actually this coin solve the problems on which the banks struggle to take action. That low cost transfer and instant settlement it the one make stable coins ideal to use with  online transfers and for other transactions.

If it happens that many jurisdictions open their doors for stablecoins. The businesses or local merchants would provably adopt and will try to cope with the demand or use the current famous method used by lots of people in the world.

Let's be realistic: what problems do stablecoins solve? In countries where they are legal, cryptocurrency controls are sometimes even stricter than banking regulations.

Stablecoins help circumvent sanctions and transfer capital between countries, but if you operate illegally, you won't have access to legal protection.

[justdimin]

Crypto is supposed to be alternative for payments, to be better than traditional payments but with the things that are happening in the stable coin, I don't think they are going to be standard for international payment. Why should I use something that the owners are going to restrict me from using it. The reason why many people are like stablecoins is because they are frustrated with the way centralized platforms are doing them but stable is the king of centralization.

I use stable coins for payment, they are quick and fast but their policy or I don't know if they have mode of operation, they can seized your coins at any time and they are government compliance, they can do and undo this is why many people don't like them. If I'm going to make payment in a place where they are going to take everything from me, I will not use it and it can't be international.

Well, it may not be something that is used by all in the mainstream, but it is still used as an alternative by many people. Why do you think billions exchange hands every single day? It is because it is faster, cheaper, and more trustworthy than anything else. No alternative to this is better: PayPal? payoneer? wise? You think these are better than stablecoins? One chargeback, or one account frozen, and you are going to get right back to crypto. This is why people prefer stablecoins.

However, that doesn't mean it will become the mainstream first thing people use; of course, fiat is still used a lot more, and that makes sense, but that doesn't mean that we are going to keep at it for the long term. It will get less; fiat will get less, I mean, and stablecoins will get a lot higher in the long run. This is not something that is "maybe" will happen; it is something happening. Every single year we have more and more; I do not see that stopping anytime soon.

[o48o]

The rules by which the global economy operates can be called global rules, albeit with an exaggeration.
Hacks do occur in DeFi projects, but when using stablecoins for payment, the risk of being hacked is minimal. Secure solutions from well-known crypto wallet providers have long been available. One of the major risks in this ecosystem is being blocked by the token issuer.

Minimal? For non tech-savvy people it's far from minimal and those are the people you need for adoption.

You also would need ability to get your money back if something goes wrong, and that's why immutable blockchain pretty much a non-starter. As with that there's no way you can recover anything sent by mistake. For scammers who are exploiting non tech-savvy people that's almost as good currency as anonymous prepaid cards.

Just while ago there was an issue where a known and trusted company in here had third party ads in their site, and one of them was injected by hackers whole were able to control crypto wallets of anyone browsing it.

[Abiky]

Let's be realistic: what problems do stablecoins solve? In countries where they are legal, cryptocurrency controls are sometimes even stricter than banking regulations.

Stablecoins help circumvent sanctions and transfer capital between countries, but if you operate illegally, you won't have access to legal protection.

Stablecoins are just Fiat 2.0. Nothing different than what we already use. Only that all transactions are digital, instead of analogous. By this, I mean no physical presence of money (cash) whatsoever. That's the whole idea of CBDCs. Stablecoins mimic this idea, but without the direct backing of governments. Instead, they're backed by corporations. Governments can either decide to allow stablecoins to live alongside Fiat, or just leave Fiat alone. Perhaps, governments are going to let stablecoins become the "de-facto" digital currencies of the world.

For traders, stablecoins does wonders. But for those seeking something reliable, they're better off using Fiat alone. Stablecoins would be less risky if they had the backing of mainstream governments. We'll see what happens.

[abaeze]

They help reduce costs while making global transactions faster and more accessible.
Although regulations are still evolving, stablecoins are already playing a significant role in digital finance and are expected to become even more important in the coming years.
What do you think?
Will stablecoins become the standard for international payments?
Which stablecoin do you trust the most, and why?
I look forward to hearing your opinions and experiences.

Stablecoins are mainly used as an alternative to fiat currency, that is, the flip side of fiat currency. If there is no crypto, there will be no stablecoins. Stablecoins play an important role in making profits from crypto usable, although so far no specific rules or government infrastructure have been created for the coins, around which all coin companies will follow a specific and reliable sustainable rule. So in terms of trust, it is a personal matter for the user.

However, since America is still first in terms of crypto superiority. So, these coins can be held with this confidence that it will not vanish overnight.

[Jostle]

Regulated stablecoins are the future. These are stablecoins backed 1:1 by fiat, and also 100% audited, and also approved by the government. The advantage of regulated stablecoins are that it can partake in DeFi and can provide good yield.

[Smack That Ace]

Stablecoins are mainly used as an alternative to fiat currency, that is, the flip side of fiat currency. If there is no crypto, there will be no stablecoins. Stablecoins play an important role in making profits from crypto usable, although so far no specific rules or government infrastructure have been created for the coins, around which all coin companies will follow a specific and reliable sustainable rule. So in terms of trust, it is a personal matter for the user.

However, since America is still first in terms of crypto superiority. So, these coins can be held with this confidence that it will not vanish overnight.

It's wrong to say that there are still no specific regulation for stablecoin. The EU already has Mica, which regulates them quite strictly, while the US has the GENIUS Act, which establishes a regulatory framework for payment stablecoins. The stablecoin market is no longer an entirely unregulated space as you suggested.

Many investor won't like or admit this because they want Bitcoin itself to become the foundation of the next generation of global payments. But stablecoins seem to be in a much better position to take on that role.

[pooya87]

Many investor won't like or admit this because they want Bitcoin itself to become the foundation of the next generation of global payments. But stablecoins seem to be in a much better position to take on that role.

True bitcoiners mainly care about decentralization, censorship resistance and global access. The scale of bitcoin's adoption is not their main concern. Not to mention that here centralized stablecoins that are regulated by the governments and are censored are not even in the same category as bitcoin for the bitcoiners to have any concerns over their assumed growth.

[NodeMystic]

Stablecoins are the most important for buying and selling with other coins. Easy to access and transfer to others without any transfer time or limits, stablecoins are becoming more popular day by day. It have no limits or borders. The withdrawal process is easy. Nowadays, it can be transferred from customer to customer. In the future, all users will have stablecoins. Then no one will have an interest in buying stablecoins; instead, they will all want to sell stablecoins or exchange it for physical products. So there should be strong regulation globally. I think it's just a matter of time.

[oll]

Stablecoins do offer certain utilities that are sought out by the traders who are trying to make a profit on exchanges but they also have a lot of disadvantages that make them very risky things to use.

For example they are centralized mostly and your funds could be frozen by the centralized authority. In fact one of the reasons why these companies have been evading regulations is because they will have to freeze more funds in the future compared to before and that will kill them.

In addition to that, they all claim to be pegged to some fiat and backed by some assets but nobody can know for sure. Most probably many of them are scamming their users and are running some sort of fractional reserve banking crap where they only have a tiny portion of their coins backed by real fiat and the rest are being printed out of thin air. That means if some day "shit hits the fan" that 1:1 swap rate that they promised could drop so rapidly you wouldn't be able to press the sell button fast enough.

Barely three days after your statements were made, USDT underwent a full audit by KPMG, after all, they had lacked transparency since 2017, yet still achieved the massive adoption we see today. Unfortunately, everyone knows about USDT. I am certain that the audit didn't make Bitcoiners trust Tether any more than before. I can't speak for everyone, but my own level of trust in them hasn't increased by even one percent. They can call this verification "independent" all they want, but to me, USDT remains the same peculiar product it always was.
Yes, you were right to say it suits traders, but it might actually be a poor choice even for that purpose. After all, no trader is safe from the risk that Tether’s centralized leadership might -say, tomorrow guydecide that the trader's country of residence (or the trader themselves) has violated some rule, and freeze their USDT. The same applies to OFAC mandated actions. In this regard, Tether is little different from a conventional bank. And none of the affected parties would have any recourse to appeal such a decision.
While I was writing this post, Tether carried out another freeze. Even though it involves criminals, centralization is still centralization:
https://www.marketwatch.com/story/china-may-be-secretly-stockpiling-gold-why-that-spells-trouble-for-the-u-s-dollar-a92212a9

[goldkingcoiner]

Which stablecoin do you trust the most, and why?

The stable coins are backed by fiat. What if they got depegged? There are times that I use the stable coins, but I do not trust anyone among them. There have been some fiat collateralized stable coins that got depegged this year and they will not be the last ones.

Another things is that the stable coins are centralized.

The most common one which is USDT is even having regulatory issues.

Exactly, this is why stablecoins are worse than simply fiat. There is an additional layer of trust on top of what is already fiat. If I wanted to use fiat then I would just use it. What is the point in using something that is pegged to fiat but also carries additional risk?

What happens if the government decides that they are going to change the currency? That is an interesting thought. For example, Germany used to have the Deutsche Mark then came the Euro and the DM became completely worthless. Anyone who did not switch in time was left sitting on their worthless currency. And why is it worthless? Because that is what the politicians decided. Simple as.

The least risky currency is Bitcoin. I refuse to go back to fiat or even fiat-by-proxy (stablecoins).

[henmark]

Which stablecoin do you trust the most, and why?

The stable coins are backed by fiat. What if they got depegged? There are times that I use the stable coins, but I do not trust anyone among them. There have been some fiat collateralized stable coins that got depegged this year and they will not be the last ones.

Another things is that the stable coins are centralized.

The most common one which is USDT is even having regulatory issues.

Exactly, this is why stablecoins are worse than simply fiat. There is an additional layer of trust on top of what is already fiat. If I wanted to use fiat then I would just use it. What is the point in using something that is pegged to fiat but also carries additional risk?

What happens if the government decides that they are going to change the currency? That is an interesting thought. For example, Germany used to have the Deutsche Mark then came the Euro and the DM became completely worthless. Anyone who did not switch in time was left sitting on their worthless currency. And why is it worthless? Because that is what the politicians decided. Simple as.

The least risky currency is Bitcoin. I refuse to go back to fiat or even fiat-by-proxy (stablecoins).

This is why I never really liked them, and never understood people who liked them and kept their money in stablecoins as well. If I am buying bitcoin, then I am using fiat to buy, and if I am selling my bitcoin, my exchange allows me to keep it in fiat, so I have absolutely no reason to need a stablecoin. What is the difference between having dollars in my bank account and having USDT in my binance account?

It is the same money, and keeping dollars in a bank account feels a lot easier to trust; keeping USDT in binance requires me to also trust the Tether team, and why would I need to? Doesn't mean I do not trust them, but I do not have to trust them; there is no need for that extra layer for me. For people who need it, because they have to, I understand using it, but those are very few and not hundreds of billions of dollars like the market cap USDT has; all of those people bought all that many USDT for some reason that I will never understand.

[Charles-Tim]

[This is why I never really liked them, and never understood people who liked them and kept their money in stablecoins as well. If I am buying bitcoin, then I am using fiat to buy, and if I am selling my bitcoin, my exchange allows me to keep it in fiat, so I have absolutely no reason to need a stablecoin. What is the difference between having dollars in my bank account and having USDT in my binance account?

The reason many people use stable coins is because of the inflation in their countries which is very high than the one in United States. People that are using pounds and euro may not want to use stable coins. Also are countries like Kuwait and South Korea, unlike many countries that are still developing. But stable coins have their own bad sides.

[Johnlomape]

Regulated stablecoins are the future. These are stablecoins backed 1:1 by fiat, and also 100% audited, and also approved by the government. The advantage of regulated stablecoins are that it can partake in DeFi and can provide good yield.

Stablecoins are centralized and they are backed by government policies and it's a good reason to understand the risk on putting all your money in a CEX digital currency where you may not have the full control to control how you spend your money.
Stablecoins is not safe to hold especially in a large amount when you can buy Bitcoin that is decentralized and have full control or your coin without being afraid that the government is going to freeze your money in your wallet because of some stupid reasons.

[MadSl1m]

Freezes got covered above. There is a second way this breaks that nobody mentioned. When you pay with a stablecoin card, the shop never sees a stablecoin. The card company sells your USDT for fiat and the payment goes over Visa or Mastercard like any other card. That part can stop by itself, with Tether doing nothing. Two cases from this summer. Fiat24 paused crypto top-ups in July (they called it temporary), and Kulipa, which ran cards for several wallets, had all its cards stop at the end of July. Over 120,000 cards, by their own count. USDT worked fine the whole time. The card layer is what broke.