Stablecoins: The Foundation of the Next Generation of Global Payments

[Accardo]

Most of the stablecoins are centralized that is the biggest red flag in it, and we even have better version of stablecoin which is coming from respective government called CBDC, so why not it is considered as future over a stable coin like USDT?

USDT is a very famous stable coin, accepted across multiple merchants, easily convertible by millions of users or traders daily, finding another stable coin that'll dominate or monopolize the stable currencies like USDT is doing will be difficult. As we see in crypto, every coin has its category, in the stable assets USDT is likely the future, in other categories under risky, and volatility assets bitcoin is the future.

[SanjkaM]

Cryptocurrency payments cheaper then bank transfers.
Also it is necessary to remember that bank transfers a not available for many people around the world.
That is why many people prefer to use cryptocurrency and stablecoins for fast and cheap payments.

[asriloni]

What is the difference between having dollars in my bank account and having USDT in my binance account?

The difference is that you can get more yield with your USDT by having nearly zero risk same as holding fiat currency. Most of banks are robbing your yield for their own, it's the reason people interested in keeping stable coin over fiat money in bank.

You will get the yield you deserve by holding your money.

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.

Holding your money in bank is also require you to trust bank people while we have plenty of cases about bank people were running away with their customer money. So holding fiat or stable coin such as USDT posses the same risk, but USDT feels far more flexible and superior because you can maintain your balance anytime at the same tiem get pretty good yield.

I also give you an example why keeping fiat is also possessing the same risk in the picture i provided above.

[Jostle]

1:1 Stablecoins backed by real fiat is the only one that can withstand the test of time. That means USDC.

Others like USDS (I believe it's the renamed "DAI") are backed by ETH deposits in the MakerDao (previously named) network, those are backed by collaterals. They are still stable.

The rest might have issues.

[Abiky]

Let's assume stablecoins becomes the future then what is the bring we achieve? Nothing, we are shifting from regulated banks to private players to trust with our money.

Most of the stablecoins are centralized that is the biggest red flag in it, and we even have better version of stablecoin which is coming from respective government called CBDC, so why not it is considered as future over a stable coin like USDT?

Stablecoins are quickly becoming a thing because of their added convenience. They combine the programmability and security of crypto, with the stability of regular Fiat currencies. Stablecoins these days are deployed among diverse public blockchain networks. That's one of their main advantages over CBDCs. These last ones are more restricted and less "open" to the world. You won't be able to use a CBDC on a "De-Fi" platform as you would with a stablecoin. It's this reason why I think stablecoins will take over the world in the future. Governments will decide to abandon the idea of deploying CBDCs and embrace stablecoins instead.

While stablecoins are backed by private companies, these same companies are under the control of the government. They will be forced to meet or comply with the government's demands. Or face the consequences of losing their business. It's the way of the future. And we must be prepared for it.

[Findingnemo]

Let's assume stablecoins becomes the future then what is the bring we achieve? Nothing, we are shifting from regulated banks to private players to trust with our money.

Most of the stablecoins are centralized that is the biggest red flag in it, and we even have better version of stablecoin which is coming from respective government called CBDC, so why not it is considered as future over a stable coin like USDT?

Stablecoins are quickly becoming a thing because of their added convenience. They combine the programmability and security of crypto, with the stability of regular Fiat currencies. Stablecoins these days are deployed among diverse public blockchain networks. That's one of their main advantages over CBDCs. These last ones are more restricted and less "open" to the world. You won't be able to use a CBDC on a "De-Fi" platform as you would with a stablecoin. It's this reason why I think stablecoins will take over the world in the future. Governments will decide to abandon the idea of deploying CBDCs and embrace stablecoins instead.

While stablecoins are backed by private companies, these same companies are under the control of the government. They will be forced to meet or comply with the government's demands. Or face the consequences of losing their business. It's the way of the future. And we must be prepared for it.

I guess it can go either way, CBDC is perfect opportunity for the government to take complete over and they don't need banks for tracking but stable coins are more convenient so unless the government issues ban on stable coins then CBDC will not prosper as it supposed to be.

In personal opinion, I will choose a stable coin over CBDC because of the convenience factor but I never hold anything in my wallet only in exchange for short term.