Digital assets like cryptocurrencies have yet to achieve widespread adoption, in part due to their volatile nature. Over the course of a year, the value of Bitcoin (BTC) skyrocketed from US$900 in late 2016 to US$20,000 on the CoinDesk Bitcoin Price Index (BPI) in late 2017. But as of March 20th this year, BTC was trading for only US$3,999.47.
Although developments like the Lightning Network, Bitcoin’s second layer payment protocol, simplifies swaps and enables fast transactions between participating nodes or users, the issue of volatility remains and has discouraged most retailers and enterprises from engaging in cryptocurrency exchange.
The fact that businesses have little to no interest in having their assets received and held in a digital form like Ethereum (ETH) or Bitcoin makes it harder for cryptocurrencies to gain traction. Unless digital assets stabilize, the risk of customers overpaying when making online purchases is too great to ignore.
Cryptocurrencies volatility has led developers to devise a solution in ‘stablecoins,’ which can be pegged to a currency or exchange-traded commodity. Stably has created its own stablecoin called StableUSD (USDS). When a buyer purchases one StableUSD for US$1, Stably mints a digital token. When Stably receives one StableUSD, it removes the coin from circulation and returns the dollar back to the seller.
The ultimate goal is to stabilize cryptocurrencies while maintaining their business-friendly attributes, like fast transaction speed and anonymity, just to name a few.
Stably CEO Kory Hoang, one of two keynote speakers at the “Stablecoins in Mass Market Ecosystems” coffee talk, said,
The most immediate use case of stablecoin is as a medium of exchange and a store of value for cryptocurrency traders.
Many exchanges don’t let you easily convert between cryptocurrency and traditional fiat currency, a stablecoin fixes that, and gives traders more control over their investments, especially in times of volatility.
The other speaker at the meetup was TomoChain CEO and founder Long Vuong. Vuong talked about decentralized exchanges (DEX’s) – cryptocurrency exchanges that operate in a decentralized way or without a central authority.
The event was co-hosted by Asia Blockchain Review, TomoChain, Stably, Zasco Group, and Infinity Blockchain Ventures.
About Asia Blockchain Review
Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.
Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.
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