In an opinion piece posted in Forbes, Rachel Wolfson makes the case that stablecoins will gain significant momentum in 2019 and will be responsible for unleashing blockchain’s first real wave of adoption.
Stablecoins first came on the scene in 2014, but since then over 50 different stablecoin projects have emerged. The most significant expansion occurred in 2018 in response to the crash. Now, stablecoins are being seen as the bulwark against the volatility which has historically plagued the crypto space. In her new piece for Forbes, Rachel Wolfson argues that stablecoins will usher in a new wave of adoption for the crypto space.
It’s no secret that stablecoins are a hot item now in the blockchain world. Just recently, J-Coin Pay announced its official launch date in Japan which will support its own stablecoin for payments. The project is supported by the Mizuho Financial Group. Just as recently, J.P. Morgan announced that would be releasing their own stablecoin to speed up payments across borders, especially corporate debts. It seems then that everywhere you look, interest in stablecoins is on the rise.
Indeed, stablecoins are just as important for the security token industry. Without limits to crypto’s inherent volatility, investors will be far too cautious to invest in the security token space en masse. This means less room for the tokenization of real-world assets.
Stablecoins Are Here to Stay
One of the ‘breakthroughs’ mentioned in Wolfson’s piece in Forbes is FACTOR–805. This new STO will be linked to the Dai, a stablecoin built on Ethereum. Payouts will be done in Dai based on the success of real-world assets in Brooklyn; condominiums whose value will be represented by FACTOR-805 tokens.
According to Wolfson, there is real evolutionary potential here for stablecoins. They can move the entire space forward.
Donna Redel, former Chairman of COMEX and member of the World Economy Forum, argued that stablecoins just may be the bridge necessary between traditional finance and crypto. “It’s an exciting development for both the crypto and structured finance world to see the way emerge for us to build a viable bridge between the two,” she said.
Stablecoins bring not only stability, but also transparency. And we must not forget that without stablecoins, the future for tokenized securities looks murky at best.
In short, it looks like stablecoins are here to stay.
Do you agree with the author’s sentiments? Are stablecoins here to stay? Let us know your thoughts in the comments.
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