Topic: Increase in stable coins adoption might just be the key to crpyto dominance. (Read 608 times)

I don't see anything wrong with holding stable coins because this is pegged to the USD and it does add any much value to the crypto market. We need to focus on Bitcoin which is the major in the market and we could make something profitable from it. Since the emergence of stable coins, people have been having options on swapping their coins to it so that the market volatility would not affect any of our holdings after we have decided to stay off volatile tokens. Stable coins like USDT are good to hold and they have a strong network based that keep investors on a more safer arena with excess fund been invested in Bitcoin.

stablecoin exist just to give convenience of bridging fiat to cryptocurrency and thats fine also most of these stablecoin are either transparent or audited anyway.
I think they are good for people that tries to trades or invest after all we need some form of asset that doesn't have as much volatility as cryptocurrency in general and stablecoin just works for that.
the fact that tether USDT so popular and even has that big of a market cap thanks to the fact that people keep using it across various exchanges whether its cex or dex its the same stablecoin are still being used widely for those that tries to avoid the volatility, it utilizes cryptocurrency at its core so its fine I guess it goes to demonstrate that the technology of a blockchain could definitely be used for digitalizing current conventional and traditional fiat's paper money.
considering that many countries are preparing their own CBDC i think i can see the future where many governments are trying to go that way also to reduce carbon footprints.
it indeed cannot dominate even if it has big market cap its just digitized fiat at the end of the day.

There is some certain thing that what arguing but based on your own explanation you are right, based on your theory so what I want to let us know you that a stable coin have not been considered in any way for buying and Selling of goods and services, so those Mastecard  and  Visa card you listed can be issued from Bank why stable coin from Bank, so it is not possible for using a stablecoin for payment especially in a supermarket or any other place except that it is person that knows or demanded to trade with stablecoin

Stablecoins are a buffer connecting fiat and cryptocurrency. At its core, it is fiat, but in the world of cryptocurrency. Therefore, although stablecoins are a great help for participants in the cryptocurrency market, they are not cryptocurrency. The proliferation of stablecoins cannot increase their value. But since they make it easier to work with cryptocurrency, people's trust in cryptocurrency should increase. But stablecoins cannot dominate over cryptocurrencies. These are completely different financial assets.

The main usage of stablecoins is, indeed, to escape volatility. Nevertheless, specifically, cryptocurrency is famous because volatility is quite untrue. It does not gain popularity merely because it is volatile, but there are other aspects. Volatilities are rather an inherent aspect in its current form, so it cannot be the aspect of the cause in which it leads to popularity.

People do not need to experience volatility to "enjoy" or use cryptocurrency. It is also true, that in some countries, stablecoins are utilized because simply there are use cases, so you see fiat is not always convenient.

I would guess that it wouldn't be all that bad, I mean it looks like it could be something good to increase the adoption. I do agree that it is not all that bad, and I agree that it will definitely go to a level where it could benefit everyone, but that doesn't mean that we are not going to end up with something that would be greater for adoption, it will definitely help.

All those people who want to get into crypto, or start accepting crypto but fear the volatility could end up using this one and they would do a lot better. It is still fiat in a sense and the price is still just dollars, so nothing changes, yo udo not get any volatility at all. This allows them to get into crypto world without risking anything at all. This should be the most important part because there are tons of companies who do not get into crypto at all fearing that they will do a lot worse, and I believe that we are going to end up with something that would benefit the adoption rate.

If you go to Turkey, where the local government issued currency isn't fairing so good, you'll see exchange offices that offer to fill your crypto wallet with Tether USD in exchange for cash. This was super interesting to see. Stablecoin usage is indeed something in high demand, and the ease of use crypto offers compared to traditional banking to those familiar with technology is indeed noteworthy. However, there's only certain audiences that would be more interested in that. For instance, if I live in a developed country, I can transact money around the world  and access very good exchange rates for different FIAT currencies just with a bank account and a couple of online services.

For crypto to take over as a viable payment method in developed countries, something better than just stablecoins would have to exist. And given bitcoin's decentralized nature though, I don't think establishing institutions would help. What might help bitcoin receive more adoption is if the financial system would either collapse or implode by establishing even more authoritarian measures than what we face today. But we can't really do much to bring another financial crises on our own. The good (or bad) thing is that they tend to come on their own.

that I feel somehow true, it even good for remmittances, the fact that its available in various blockchain means it can get better utilized than using paypal for remmitances because the cheap fees required.
its not like using ordinary cryptocurrency where the prices also fluctuates as well its just overall good at some specific things.
but of course it kinda sucked for investment even the staking aren't really great at making the profits.
there are also many controversies surrounding this coin though.
I personally when it comes to investment i will invest in crypto like bitcoin and ethereum and consider stablecoin just a tool.

Merchants are avoiding PYUSD simply because they had or heard bad experiences from the client of Paypal.  Many of Paypal users know that this company freezes accounts and even suspend them, so they may probably think the same thing may happen with PYUSD since its network can freeze and confiscate fund in any accounts/addresses by simply blocklisting it to the network..

Stable coins have their uses and that is undeniable, as they allow you to move back to a cryptocurrency that behaves similarly to fiat on the moments you may not like to be invested in this market as it is too volatile for your tastes, however I do not really see too much of a point to use stable coins in the same way you would use your fiat, since in that case it would be better to just use your fiat currencies instead, however I could see some people doing this and it could be one of the necessary steps on our quest to use bitcoin in our everyday lives.

Maybe they only think about more safer option to choose for since price cannot possibly go down since they only know that price of this coins is stable and they are not afraid to let it rot on their wallets. But they forget the certain aspect on why cryptocurrency became famous and one reason for that is due to its volatility. Many people love to see that since its more profitable than any other asset. So if they choose stable coins over than that for sure they cannot enjoy crypto and other people might choose fiat since its more convenient to use.

I like the current state of stable coin and I think there's nothing to change with it as I don't really trust them since they could still go down if they are affected on some big issues that can question there existence especially if government will take a look at them and declare them as illegal.

Stable cryptocurrencies certainly don't have the potential to positively or negatively affect the dominance rate in the cryptocurrency markets in any way because their intended use in today's conditions is only to trade against fiat currencies. Moreover, to make an evaluation according to today's standards, we see that many people use cash, credit card, debit card or check for their daily expenses. In other words, while cryptocurrencies aren't yet fully widespread, no individual uses stable cryptocurrencies as a means of payment method and they aren't accepted as a payment method in many businesses.

On the other hand, we see that stable cryptocurrencies have achieved an important ranking in the cryptocurrency markets due to their transaction volume but this isn't because they are used for earnings or investment but because they represent fiat currency in trading pair parities against all cryptocurrencies. So, in a possible scenario even if any of the stable cryptocurrencies ranks first in this ranking, this will only be because it is used in many transaction parities. It wouldn't be right to think that these cryptocurrencies which have no features or investment opportunities other than representing fiat currency will ever gain leadership in terms of dominance or determine the direction of the market.

Would be ironic if cryptocurrency dominance is led and caused by stablecoins. As others already suggest, this is misleading when we try to compare card network settlement rate with stablecoins volume and transaction rate since the metrics are somewhat unclear.

However, we must note that indeed stablecoins do offer more flexibility and transparency, for example, the fact many people can easily exposed to them and utilise them directly is convenient. In some countries where you said it developed one, this exposure surely makes the alternative payment/currency within the market viable to be used. But, cryptocurrency dominance isn't likely to be specifically caused by significant stablecoins adoptions.

stablecoin has been indeed having massive growth in term of market capitalization that it far surpass many of the coins out there that its actually quite awesome on its own, even paypal a large company that dominates their own fields are now interested in getting that share of massive growth in stablecoin.
I do think that stablecoin can indeed helps growth of cryptocurrency market capitalization overall by utilizing the technology while also keeping the value from fluctuating that much.
overall as you said it could be the key to crypto dominance, but the benefits for cryptocurrency in general specifically bitcoin and etheruem i think can still be argued.

Stablecoins are now mainly used to circumvent sanctions or not to keep funds in banks. People do not trust banks very much now. Therefore, if a person has stable coins, it absolutely does not mean that he will buy cryptocurrencies. It is simply a more reliable means of storing value

You can say that stablecoin does help the crypto market during pumping and all, but in the real world, they are not widely accepted compared to Visa and Mastercard. No one is accepting stablecoins in the real world for commodities etc., except a small percentage of crypto sites and casinos. Stablecoins are a bubble; look at the total circulating supply of USDT and compare it to 3 to 4 years ago. They are just minting new USDT along with other stablecoins. Don't you think this could be a scam or something? Stablecoins only mimic the fiat and can be used to store your profit for the short term.
With all the regulations in place, crypto payments are not a global phenomenon. The US government and SEC are going to bust a few scams in the near future. I think CBDC might be the way forward in this regard, along with other countries' stablecoins, but then there will be no privacy of transactions.

When many people understand that crypto fluctuations are so high that saving assets in stable coins with long-term goals is the best solution to avoid losses, moreover, most companies that own stable coins have a reputation and legality that makes investors make stable coins the main choice.

Competition will continue to occur in the economic sphere in all countries in several sectors, including in the currency and stablecoin development sector. CBDC is part of a project that will be developed by several countries that have begun to experience progress in the crypto economy sector, because this is being done to make it easier for people to use currency. Even though many people already know about currencies in the crypto space, they can also be used easily by everyone. So competition in any case will still exist and will continue to occur in all sectors in order to be the best and also to attract more users.

The increase in crypto dominance is related to money flowing into crypto. Put more plainly it means a lot of people buy crypto and keep or use it. I think it's useless to have lots of stablecoins. Because the stable coin is backed 1:1 by USD. This is the same as the digital dollar, which does not affect crypto dominance though. unless the stablecoin is used to buy crypto, then the crypto is stored or used en masse, such as for shopping, payment and investment. However, for payment, I don't think it can run smoothly. Because many regulations in every country still prohibit crypto as a payment. If crypto is able to become a payment rival like visa and credit cards, I think crypto's dominance can increase exponentially.

Are there any updates on the stablecoin dominance here? I think it has been a while but there's no significant impact that I have seen or news about it. It's always going to be overpowered by the current payment processors I think. It's definitely a different league IMO if we're going to talk about that. Cryptocurrency has a league of its own.

Stablecoins first appeared as private and other commercial financial assets, but more recently we have seen the emergence of CBDCs - digitized national currencies of states that are created primarily using blockchain technology. The number of state stablecoins will grow, and since they will compete with commercial ones, states, by regulating and complicating the rules for the circulation of commercial stablecoins, will create tangible obstacles to their development. Therefore, I do not expect strong further development of the current stablecoins, much less their assistance in the dominance of cryptocurrencies in the financial market.

Stablecoins still influence the crypto market even though they're not considered a crypto currency. They are meant to provide a stability arm to volatile cryptos. As much as I'm reluctant towards them, they do more harm than good if your purpose is trading. Average Bitcoin user doesn't need them.

Even if the underlying reserves don't actually amount to the stablecoins in circulation, I suppose the illusion of liquidity is what keeps things going. I'm still waiting on an actual 3rd party audits for Tether's reserves. Seemingly every Tether holder has to at least recognize that the entire system is built on a house of cards.

What do you mean by that, dude? Because of how many years I've been in this industry, I haven't heard of a single merchant or company that accepts payment in stablecoins. Yes, I know stablecoin can be used as an option payment, but are there many merchants or companies that do this?

As far as I know, there are none, because the only ones that I hear are accepted are Bitcoin, Ethereum, Dao, Monero, and others. But not stablecoins; maybe if there is, the USD or USD is only rarely thought of in my idea.

Whether what he thought was stable coins or cbdc that can never solve any problem and the government would never see that as an option or a problem to them. People are tire of holding fiats which is almost similar to fiat. Stable coin can not make anyone rich or increase our profits for holding it. I don't see any problem so far that stable coins have solve in alleviating sufferings and increasing the value of our Capital. I would better go for a volatile coins than the stable ones since they have the potential to increase in price.

Expected for those merchants on having that kind of treatment or behavior on which they cant really be just that easily be adopting or integrating on things which are decentralized or not really that regulated.
As much as possible they would really be avoiding on things which would really be putting up in trouble. Speaking of news and updates then lets stick to Paypal.

PayPal’s PYUSD struggles with early adoption — Nansen
https://cointelegraph.com/news/paypal-pyusd-stablecoin-struggles-with-adoption-nansen

They do even tend to create their own stablecoin which it is always that pegged with dollar and since these coins are really that stable or getting in line with regulation then it has nothing
to  do different on what we do have in fiat. Therefore, it isnt something that would be relevant on speaking about crypto dominance since these arent crypto at all in the first place.

Stable currencies are mainly used in trading platforms, where a novice user cannot understand the basics of their development and will most likely treat them as if they were fiat dollars. PayPal, Neteller, and other financial institutions never have a priority to spread blockchain culture and educate their users, and they do not even provide users with the ability to make payments except through a payment gateway.

It is actually one of indicator that some people use though and wether people hate it or not, stablecoins have been part of crypto and it is going to be as well in the future. Does anyone even remember how chaotic back then when UST crashed? it was chaotic and frankly speaking, it shouldnt really affect bitcoin / crypto in any dominant way but it did so the increase in share of stablecoins are actually correlated to the spread of cryptocurrencies in a sense

I like the analysis of stablecoin and Visa to see that even Visa is valid and valued for P2P transaction more than stablecoin that is pegged with another fiat and bitcoin the most of all decentralized coin with freedom, privacy and dominance on all other coin .

So why not go direct and use your card and at least avoid the primary stress of accessing the internet.

These days it is rather hard to find any one who uses the internet who doesn't know or haven't heard of cryptocurrencies or BTC. Check. 
Online browsers like opera mini, Firefox have crypto wallets that would make users wonder till findings that it is meant for cryptocurrencies.
Also, anyone using payment apps like PayPal, Skrill and the others as mentioned will at some point encounter cryptocurrency for payments, because the solution to huge transaction fees, certain level of anonymity and privacy is crypto.
Tell me what better way to make crypto more dominant if not the campaign of decentralized stable coins competing with each other to do and deliver better returns.

Centralized stablecoins that have an issuer? So just like fiat money in digital form? CBDC? Hell no!
What problems do they solve? In what way do they help bitcoin? If you want bitcoin, buy bitcoin. If you want to hold fiat - hold fiat. A stablecoin is like a fiat wannabe that allows people to skip paying taxes in countries where every transaction is a taxable event. I don't see any other use for them. Nobody transacts with them and nobody uses them as a store of value.
If you can explain to me why a person like me, who already owns bitcoin, needs to own a stablecoin, I'm all ears.

I would not attribute the increase in the share of stablecoins to the accelerating spread of cryptocurrencies. Stablecoins are a convenient means of storing and transferring data without losing value (the cryptocurrency rate jumps every second, while the stablecoin rate jumps once a day). For many people, it is.

I don't know the connection between bitcoin and stablecoin that has to be something we look on to for increase in bitcoin adoption, i see stablecoin as an alternative to hold down your money when you're yet to decide on what and were to invest on, i think it's more secure having it in stablecoin than fiat, but any decision does not make an increase or decrease in bitcoin adoption, what the people needs is bitcoin and not other other form of crypto or digital currency.

Though most (or maybe all) of stable coin is centralized, and backed by fiat, as long as they are using Cryptographic encryption and blockchain technology, they still can be considered as cryptocurrency, a centralized crypto currency but still cryptocurrency, and it might sound weird, but there are actually some people who are never learn Bitcoin or Crypto, but they are familiar PayPal, Skrill and other online payment method, with PayPal releasing a cryptocurrency, it might be their first step to learn about crypto. I don't fully agree to every statements by OP, but some part of his opinion actually make sense.

I can't really believe that it would come down to that, but there is both a right part about it and wrong one. Correct part is the fact that we are talking about a place that would be quite different, I mean stable would make all the companies all around the world pay each other easily, better than Paypal, and it would work amazingly. However, the wrong part is the fact that what if the stablecoin crashes? I mean is there a guarantee that USDT will not crash to zero tomorrow? There is absolutely no guarantee. This is why we need CBDC or whatever they are called, a stablecoin that is made by the government, at the very least you would be guaranteed it will not crashed.

Can you make a proof whereby countries make a payment or accept cryptocurrencies as a legal tender, we all know that cryptocurrency especially bitcoin have not been accepted worldwide as a currency, but the news or information have had it already that their an existence of cryptocurrency and it have not be officially legalized as a legal tender, what I know about bitcoin is that has influenced across the countries as digital currency that is decentralized. For the aspect of a stable coins, its well known that stablecoins have regards and have no value compared to visa, when stable coins is out of the world it won't be noticeable, I believe someone has said something contrary to my point of views towards the existence of stable coins.

You have said it all, I have not seen any super store or boutique that has accepted stablecoins in anywhere but I have seen bitcoin being accepted in the city mega stores. People have not confident on stablecoins. Even online shopping people use verve, Visa and Master Cards. Stablecoins are not reliable because their value is not even appreciated. Any business that is accepting stablecoins as their payment methods is on their own risk.

Stablecoins is just like airdrop. I am not advising anyone or business owners to accept stablecoins in their payment methods of goods and services. Because they might lose all their money. Stablecoins are centralized projects which can be collapsed at anytime.

If stablecoin gets adopted it's a wrong representation of the industry because most popular stablecoin are as centralized as the fiat currency therefore it won't make any difference as they can easily regulate the stablecoin and take control of it but they can't do that if bitcoin get adopted as the more preferably alternative payment currency. Stablecoin adoption only gives way for the government to increase their development of CBDC and that won't be good for decentralized finances.

Stablecoin are not as stable as we think and those that are holding strong are been manipulated like Tether USDT. There are allegations against them yet they're still functioning like nothing happened but if similar allegations were against small stablecoin they'll be died.

I'm going to disagree a little and add a little
1. The purpose of stablecoins is to provide a mechanism to quickly and costlessly "jump" from full-fledged crypto as it were to fiat. 
2. Volatility allows you to make money of course. But you forgot about the second side of volatility - losses. Therefore, the volatility of crypto is a "two-way stick". Someone earns and someone loses !

Maybe some think about they are safe from more dumps but they don't realize that their ability gor regaining back what they lose is gone by exchanging their holdings to stable coin. So maybe they should forget about that stable coin option since this is actually not a safe crypto to have whatever scenario we are facing on and this is also not the strongest reason why adoption will possibly happen since they already have those bank provided payment gateway and I think this is more better than stable coins so government will just likely ignore the possibilities of adoption due to those matters. Bitcoin still the strongest currency to have and for sure this is the main reason why the adoption happen.

The future of stablecoins will be shaken if the government rolls out CBDC and forces people to use it so they can easily control us. One more thing, if cryptocurrencies are widely recognized and the government requires exchanges to cooperate with local banks to create a gateway for direct trading in local currency, then the stable future of money cents would also be a question.

To answer what the OP is referring to, I don't think increased adoption of stablecoins will be the key to crypto dominance. In my opinion, bitcoin represents cryptocurrency and only when bitcoin is widely accepted and used can it be said that cryptocurrency will dominate.

You probably don't know what stablecoins are. Stablecoins, like USDT and BUSD represent American dollar in crypto world and to be frank, god knows whether they are really backed by dollar or not. So, one day, you met get surprised when you see your USDTs and they'll be 0.19238 in value.
Stablecoins don't keep the purchasing power at stable level, don't expect that if you were able to buy cookies for 1 USDT yesterday, don't expect that you'll pay 1 USDT tomorrow. They are just dollars, nothing else. If dollar gets inflated and purchasing power decreases, your USDT will also gets less purchasing power.

That is %100 true and this is why I do not use stablecoins at all. People who think that stablecoins are fine are people who are just kidding themselves. I just put my money in fiat and wait for the price to drop if that's what I want to do, which is rarely what I want to do to be fair because I keep all my investments in bitcoin and nothing else, but in rare cases that I rather have dollars, I do not use usdt, I just use usd and that way I know that it's the same thing.

Most places have a withdraw option to your bank, and in order to do that you need to have fiat, and then fiat in your account could stay there without you withdrawing it and then you could reinvest it. USDT has nothing over USD at all and people will eventually realize it.

I was thinking the OP is saying about the adoption of CBDCs of different countries and not stable coins. Although CBDCs are stable coins but they are more of fiat than crypto. The government who is avoiding or fighting crypto is still in the crypto space. Whether with or without facilitation, crypto must be widely adopted and it will have high level of dominance.

If CBDC does very well many stablecoins won't survive because there will be no need to use them, but I think that's not completely true, because CBDC seems like something that the government will use to monitor people, which can result in less adoption of CBDC, but if the government sees stablecoins to be a threat they can successfully kill each and everyone stable coins available, it will be easier because they aren't Bitcoin.

Even Visa and Mastercard payments are doing fine than stablecoins, the majority of people are used to real-world payment solutions, not stable coins, This is why I believe that CBDC will do very well in the real world, people care less what the government plan might be introducing CBDC, they are going to use it, only Bitcoin maxis won't.

I'd rather bet all stable coins are due to fail, unless they are making enough money in the good times to cover the possible failures in their attempts to peg value to dollar or anything else.   They are using leverage and reliant on factors external to themselves, when volatility occurs its likely they are unable to stay perfectly stable.
  My number one prediction is volatility is increasing every year, if true stable is a failed meta imo.  The actual news headlines do not matter as much ultimately I presume we lead upto the failure of a major currency standard and/or fiscal budget with its national debt; much like Greek debt crisis but on a escalating scale nobody can catch its fall.

Stablecoins are pegged with physical money (Mostly USD). It's the same as using that physical money. Just a fancy and more centralized way. You can somewhat cover your footprints by using physical assets. But with a stable crypto coin, you are creating more footprints. It is much more complicated than using traditional money. For this reason, I don't think stablecoins adoption alone will do a thing. Trust me, I came to know about it just because I saw your post here.
It's not a major thing that will shake the whole world and start an evolution. I don't use it myself. So what should I say to you? Stick to the OG crypto. Only those will be able to start a thing. If they become accepted, others will follow no matter what.

Also, crypto is not here to dominate. It's a way of making life easier, giving freedom to people, and getting the best of the future world. It doesn't need to dominate anything. It can co-exist with the existing system. That way we can get the best of both worlds. Individuals should be able to choose what they like. It's a free choice.

How is your country's currency different from stablecoins? Nothing, damn it! What could be a positive trend in this for currency users? Nothing. If the currency of your country is controlled by the government (central bank), but the stablecoins are controlled by a certain company, which, in both cases, can do whatever they want with their stablecoins, whether it be endless emission, and therefore inflation. Stablecoins are a very, very poor alternative for storing value, only valid for a short period of time. Stablecoins has the same disadvantages as any money - depreciation and unsuitability for storage. Stablecoins can't help countries beat inflation in any way, even though it is better than the national currency. Here need completely different tools.

The problem with stablecoins is that there are already several options on the cryptomarket, and new ones will be created. There was something similar in America, when each state had its own dollar. Which of stablecoins will win is unknown, but the losers will be useless to anyone.

Make a mistake with an investment of stablecoin and you are a beggar.

Just don't expect to much about adoption since if we talk about payment terms which is more secured then banking system can offer something more reliable and trusted than those stable coins in the market.

And I don't think its adoption will gain anything positive to the whole crypto since we cannot see some great price change with those type of coins. That's why we hear a lot of noise about bitcoin since it has a potential to rise up and can multiply the earnings of each holder so I guess that condition attract many people including those institutional investors adopt bitcoin.

Comparing apples and socks, not even oranges!

Those settlements you and the author talk about are the sum of moved coins, that's the lamest indicator of all, I can move $1000 from my exchange account to my address, then split it in $500, see a dip on the market move back to an exchange and there you have it, $2500 of volume without "settling" a thing.
Visa is strictly for payments, you go buy a  can of soda you pay, and the money leaves one person's account and ends up in another, with coins, it can be none, even if we compare it with banking volume, which even for Europe alone stands at 800 billion a day, that's 30x all the volume of stablecoins transaction and it's still not a fair comparison.

Tron has 1700000 transactions a day, Visa has 150 million a day, roughly as much as all USDT trasnctosn on eth in history!


The funny part is that Visa shutting down would kill a ton of so-called crypto cards, including Binance, thus cutting a huge chunk of stable coins' usefulness. As for the supermarket stuff, yeah, I haven't managed to get close to 100:1 when it comes to Visa vs BTC , when it's Vis vs stablecoins is 1000:0.

I somewhat agree with you on that point. Cryptocurrency was originally designed to be decentralized, offering genuine privacy. Unfortunately, government interventions are altering the fundamental nature of crypto through regulations. In my opinion, stablecoins should primarily be reserved for trading, while transactions outside of exchanges should involve decentralized coins, allowing us to maintain a degree of anonymity.

It's difficult to determine how we can preserve the anonymity we seek, especially since exchanges are also becoming regulated. The potential for enjoying the benefits of cryptocurrency and its anonymity might only become feasible when it gains widespread acceptance. However, this raises questions about whether such acceptance can occur while governments are closely monitoring our activities.

Unlike you, I am not optimistic about the spread of stablecoin payments around the world. Stablecoin is no different from fiat, and may even be worse.

Most of the Stablecoins are centralized and against privacy, unlike Bitcoin, so you see that governments condone them and may sometimes encourage them, as happened with the Paypal Stablecoin PYUSD recently.

This is the direction that governments want people to go, moving towards centralized stablecoins and leaving Bitcoin and the decentralized privacy-preserving cryptocurrencies.

Centralized companies like Paypal, VISA and Mastercard being positive towards stablecoins? I wonder why?
Maybe the reason why such centralized companies are positive towards stablecoins is because the stablecoins are a centralized payment system.
The issuer behind the stablecoins holds a certain reserve of fiat currency, which is backing the value of the coin. What if this reserve doesn't exist? Can a stablecoin survive without being backed by anything?
Why would you use stablecoins backed by USD for buying goods and services, when you could simply use USD?

Stable coin does not represent the entire cryptocurrency industry and it is no different from currency in its digital form.  so I don't think that proves crypto dominance or that cryptocurrencies are being used more than other traditional means.  even if people use more stablecoins than fiat or banks, I don't see that having any positive effect on making bitcoin more popular.
Ultimately, what is happening with stablecoin usage proves only one thing, people still prefer centralized systems and services over decentralized ones.

If there are no stable coins, there would be increasing crypto adoption. Without any cryptocurrencues, including stable coins, there is nothing that can stop bitcoin adoption.

Bitcoin does not depend on stable coins.

Most stable coins are pegged with United States dollar which is why some countries will not accept it. What I think would be common that is digital are CBDCs. CBDCs are also still fiat.

For payment, I will prefer to use bitcoin if it is cryptocurrencies that you are talking about.

Since its introduction, crypto has been synonymous with decentralization and it should stay that way. While it is very central in nature, the presence of stablecoins actually only supports the needs of speculators for trade, they do not affect this type of financial revolution.

As for dominance, I don't think there has been any change due to the fact that fiat money had dominated before the crypto era. Sablecoins are just another representation of fiat.

What I don't understand in the OP's position is that he is trying to connect the dominance of stablecoins in the digital asset market with the dominance that crypto will have as a direct result of that. This assumes that stablecoins are considered cryptocurrencies when they are just another form of digital fiat currencies. These stable currencies derive their value from the fiat currency (mainly the dollar), and this also represents their biggest problem at the same time, since most of them are issued without sufficient dollar reserve cover.
As for the uses, the most important areas of using stable currencies is in the field of trading to freeze the price in cases of a sharp decline, and I have not heard that these currencies are used in shops and commercial exchanges in general.

Yeah i do understand your point of view about visa and Mastercard. But you said if 'stablecoins disappear nobody will care' but that's not true.  How would you sell your crypto assets . Would you take your bitcoin to a bank in exchange for fait . The entire world of crypto exchange and its value in a way or two rest upon the presence of stablecoins as a currency. Stablecoins have proven to be a very important part of the crypto ecosystem iss the only save heaven in a extreme volatile market , other crypto assets like BTC can not be used for everyday transactions because their price  fluctuations, the use of stablecoins as an exchange means has increased vastly in recent years .
Stablecoins are really that important for the crypto ecosystem

The thing about stablecoins is this.... it was developed to mimic fiat currencies and that is it's ultimate downfall. Other Crypto coins have good volatility and that help people to make good profits, if they use Crypto currency as an investment. (A lot of them even beat inflation)

The stablecoins are used to park money, when there are too much volatility and that does not increase it's utility. There are also more benefits to other Crypto currencies, like Smart contracts and side chain developments.

The adoption of stable coins are already big, you can check in CMC where the top 6 trading volumes are dominated by 4 stable coins, the rest is BTC and ETH. This means most people use it for trading, but I don't think it's related to crypto dominance since no one want to hold stable coins where it's centralized, not making any profit and there's a risk of the project turn to be scam. Don't forget about UST and LUNA.

The reality is stablecoins are not being adapted the way we all wish they would be. Yes, there may be some stores and organizations supporting it as a means of payment, but in what percentage does that just fall? It is nothing compared to the dependency of people on Visa and Mastercard payments. Heck, even small boutiques post signs that state that they accept those two means of payment because they know people dominantly use it. If stable coins disappear, the majority of the world will not care about it; remove Visa and Mastercard and there will be a big problem that will lead to debates and international discussions.

Stablecoin and now unstable Yes. volatile markets, with exchange rates that can fluctuate wildly during the day, and sometimes hourly meaning stablecoins are still risky cryptos.


Yes. I think like you say.  CDBC is issued and its circulation is controlled by the central bank, and is used as legal tender to replace currency by the government and their assumptions. Because there are advantages offered and many countries are interested in developing CDBC and it has doubled during the pandemic. If I'm not mistaken Currently there are 9 (nine) countries that have fully implemented CDBC, namely Nigeria, Bahamas and 7 countries in the Caribbean Islands. But, I don't think that will make BTC falter as of now. Its good reputation and large user base have strengthened it as a leader till now.

I won't agree that crypto payments are increasing globally. The USA and the SEC policies and regulations are all against crypto (bitcoin in particular) and since they know that people are not getting back from the cryptocurrencies, so they have decided to build stablecoins which are no different than fiat money except they can be digitally transmitted.

The CBDC is one step in this case where every country will have its own stablecoins (which will be fully in control by the governments). Similarly, the big companies are also trying to introduce stable coins for example Paypal  PYUSD. etc
These are all the steps forcing people to leave bitcoin and keep money in centralized control stable coins.

Many countries are actually adopting crypto as a legal means of payment the only reason visa is still more in use is because many firms are not accepting crypto payments yet and I mean your supermarkets and other physical business that uses faits. And for now there isn't much demand for crypto payments for offline vendors. And I think you haven't read the article yet to see what I'm really talking bout

What value stablecoins settle? Go to any supermarket in the world and you'll see people paying with Visa or Mastecard every single minute. But where are the stablecoin payments?  I never encountered a business, even a small one, that accepts stablecoins.

My guess is that most of the activity on stablecoin network is speculative trading, especially by bots. If someone shut down stablecoins tomorrow, the world wouldn't notice. If someone shut down Visa tomorrow, that would be Armageddon.

I stumbled upon a captivating news piece online titled 'Stablecoins Settled as Much Value as Visa in 2022.' It's quite intriguing. Lately, I've been engaged in discussions with my friends about the implications of the growing adoption of stablecoins as a payment option in the current global landscape. To me, it appears to be a positive trend for the world of cryptocurrenciesand us crypto users. More individuals are becoming acquainted with crypto, and it's increasingly becoming a preferred choice for many.

Personally, this development brings me a lot of satisfaction, particularly because my home country's currency faces significant challenges, making stablecoins an attractive alternative for storing value. Countries grappling with high inflation rates have already embraced stablecoins for mass transactions. Moreover, the adoption of stablecoins could potentially reinforce the position of the US dollar as a global currency since usdt is still one of the leading stablecoin.

Interestingly, beyond developed nations, Visa and Mastercard aren't as dominant. It seems that developing countries are embracing cryptocurrencies at a faster pace than Visa and Mastercard can penetrate. Particularly noteworthy is the utilization of stablecoins to combat local inflation. The traditional card systems rely on banks, and banks often struggle to provide services to lower-income individuals, whereas crypto presents a more suitable solution.

The concept of stablecoins being a gold mine for transaction fees is fascinating. This explains why Visa, Mastercard, and even PayPal are diving headfirst into the crypto realm. The trend is clear: stablecoins are on the rise, and it's only a matter of time before they become as common as gift cards.

For those seeking more information on this topic, you can check out the details through this link: [https://cryptopotato.com/stablecoins-settled-as-much-value-as-visa-in-2022-analysis/].
I'm still super excited and thrilled I can't wait to see how this affect the value of BTC and other crypto assets in the world or even better since more companies are diving into  creating more stablecoins and sooner or later another stablecoin might become more dominant that usdt or thether and we might have a non fait related stablecoin.

This is a summary of the article I read created by a bot the real new is in the link above.

Stablecoins have become a dominant force in the payments industry, settling over $11 trillion in value in 2022, according to a report by Brevan Howard. The report highlights that stablecoin adoption remained strong despite capital outflows from the crypto market. The majority of non-speculative activity in stablecoins is driven by fiat-backed tokens such as USDT, USDC, BUSD, and TUSD. Stablecoin volumes only fell 11% since December 2021, while weekly transactions increased by 25%. The total value settled through stablecoins last year approached that of Visa's $11.6 trillion figure. Ethereum accounts for 50% of stablecoin volume but only 3% of total transactions due to high transaction fees. Tron and Binance Smart Chain account for 75% of stablecoin transactions and 41% of volume. Tether's USDT dominates the stablecoin market, accounting for 69% of supply, 80% of weekly active addresses, and 75% of transactions.