Stablecoins are a response to the wild volatility of cryptocurrencies. As the name suggests, a ‘stable coin’ is a cryptocurrency that seeks price stability, often against the US Dollar (‘USD’) or other global currencies. Stablecoins enable businesses to accept cryptocurrency in everyday transactions without having to risk fluctuations in the value of payments from one day to the next.
In July 2018, the EURS, a Euro-backed stablecoin launched in Malta, and last month two more high profile stablecoins from both Coinbase (USDC) and Gemini (GUSD) entered the market. Tether (USDT), also tied to the USD, already is the 10th largest cryptocurrency by market cap. There are different models for stablecoins, all of the above are fiat-collateralised stablecoins. Meaning, for instance, each EURS in circulation represents one Euro deposited in the bank account of EURS issuer Stasis.
Cryptocurrency remains unstable despite growing trust in the market. Regulators across the globe are still determining how to classify and treat cryptocurrencies and it remains a speculative trading asset rather than a day-to-day form of payment or long-term investment. Stablecoins are a pragmatic solution, offering an escape from the volatility as most of us aren’t able to tolerate rampant changes in value of money we need to run a business or feed our families. As cryptocurrency grows in popularity, it will stabilise in value, in the meantime, stablecoins offer a viable alternative.
SatoshiPay, a leader in global micropayment solutions, is planning to use EURT, issued on Stellar by licensed French money transfer company TEMPO, as its underlying settlement token.
SatoshiPay already uses the Stellar blockchain to keep transaction costs low and adding a stablecoin payment through EURT helps it to meet the needs of businesses wanting both stability and fast, affordable transactions.
Stablecoins provide ready-to-use access to the fast-growing digital payments market.
Read more at www.satoshipay.io