Are stable coins The Future Of Foreign Exchange?

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Been a long time I talked about stable coins, I guess the liquidity in the market got me so busy I forgot about the stable coin. In a world of volatility and uncertainties, people will always seek for stability and one way they can always find that in crypto is on stable coins. Crypto is looking forward to being adopted massive in the world, this way we are going to need some level of stability or something that can be used as a common ground, one way to do this is stable coins. Stable coins will have to be the S.I unit for measuring the value of these coins. What is a better way to do this than using a stable coin.

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Lets assume that crypto adoption went mainstream and the whole world starts using crypto, what do you think will happen to world currencies? Will they be abolished? Or will the world decided to use one currency since we are using crypto now? Well, I dont think so, the world will migrate to crypto and create their own CBDC’s but will use stablecoin as the medium of foreign exchange. For instance, if you give me bitcoin in pesos value and I pay you in Nigerian naira, there will be some sort of confusion, the first thing both parties will do is know how much they are worth in stable coin. This will make more foreign exchange easier to be executed, coupled with he fact that its crypto, now its faster and more secure to use.

Stabelecoin creates more transparency, this way people can see how transparent their finial activities can be this way they can track them and be accountable for anything. Stable coin helps to bridge or rather create better transition of the traditional finance and the crypto technology. Now I think the job of crypto is not to totally eliminate the traditional finance but help transition it and make it better, because the world is evolving towards a better financial technological world.

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There are plenty of advantages of stablecoin over fiat dollars for foreign exchange.

  • you mentioned transparency - there is proof of payment so that there can be no claim you didn't pay
  • you mentioned that it is faster - absolutely much faster than SWIFT
  • you mentioned more secure - for the merchant, settlement is final
  • no foreign transaction fees or exchange fees - only the blockchain transaction fee
  • you can print your own - for example, deposit ETH to get DAI or convert HIVE to HBD
  • there is no shortage of stablecoin - no need to bother with banks or exchange houses that can have government limits
  • can be instantly be turned around - you don't have to wait for the bank to settle a deposit
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you are absolutely right, the advantges of stablecoin over fiat is the reason it should be recommended but its a very hard decision for the government

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I think it's a hard decision for them because people would know exactly where they spend their money.

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