USD-supported Stablecoins exceeded the volume of Bitcoin and Ethereum transactions (find out here quotations in real time). In addition, analysts are also witnessing a wind of change towards Central Bank Digital Currency (CBDC).
As FIAT currencies begin to compete directly with cryptocurrencies, there is enormous uncertainty about the effect that Bitcoin will have in the future. The stablecoins are reaching cryptocurrencies in trading volumes and even in speed.
As regards the measure of the turnover rate of the offer, stablecoins have received larger values in the last year. A combined report of Coinmetrics and Bitstamp reveals. While the BTC and ETH speeds are between 4 and 6, the stablecoin speeds vary mainly between 25 and 50.
Stablecoin stability
Looking at the situation in a bigger picture, it appears that stablecoins are not stable enough. Many of these are not supported 1: 1 by USD, and DeFi-based stablecoins are completely different DAIs from their bases.
These are different markets that create separate supply and demand for each of these stablecoins. Research finds that the price of most stablecoins went up between $ 1,03 and $ 1,06 from 2:00 to 6:00 UTC on March 13.
This growth in currency prices also exists in real markets. However, it must not exist between different protocols representing the same currency. A cryptocurrency issued by a central bank will be anchored in price rather than in a flood of experimental protocols.
Due to their nature of cheaper goods, deviations in stablecoin prices create arbitrage opportunities. However, since 2015, they have served as a means of engaging millions of cryptocurrency users and traders.
Without stablecoins and cryptocurrency exchanges, the growth of Bitcoin and cryptocurrencies in the financial world would have been very limited. The report says, "Ultimately, stablecoins are a new gateway for users to adopt cryptocurrencies and a crucial part of the thriving ecosystem. The cryptocurrency will evolve in the coming years and the stablecoins will undoubtedly be a large part of the picture. "
Central Bank Digital Currency (CBDC)
The Chinese have come a long way in the project for a national digital currency. Local adoption has started and could soon see international transactions and wider blockchain applications within the country.
Considering how China is moving things around the blockchain, the United States and Europe may be forced to speed up their plans in a timely manner. Mati Greenspan, cryptoanalyst and founder of Quantum Economics tweeted: “I'm not sure it's a good thing or not, but it's definitely happening. Within the next year, all central banks will have some form of digital currency. "
Although stablecoins have so far acted as onramps, the question remains whether the huge supply (over $ 11,2 billion currently) will spill over cryptocurrencies and what competition between banks would look like.
