Stablecoins may represent crypto's best chance of achieving mainstream success and recognition from the traditional financial systems.
"My personal conviction on the issue of stablecoins is that we better be ahead of the curve. There is clearly demand out there that we have to respond to."
The value of stablecoinsBeing ahead of the curve and responding to demand may seem like contradictory terms, but Lagarde's comments certainly highlight the value of stablecoins - crypto tokens backed by traditional assets such as fiat money.
Elaborating on the tweet, Lagarde said stablecoins appeared more innovative to the ECB than Bitcoin.
Because stablecoins are pegged 1:1 to recognized assets, they represent a novel technology that integrates the new with the old, assuaging the concerns of those who would otherwise view cryptocurrencies with a great deal of skepticism.
Among their many advantages, stablecoins can be cost-effective by facilitating seamless, cross-border payments of blockchain-based assets and improving transaction speeds.
How stablecoins could alter the entire tax landscapeOne area, in which stablecoins offer a great deal of promise is taxation.
I wholeheartedly agree with President Lagarde: The demand for stablecoins is huge - and the net gain for the state government could be just as big.
By accepting stablecoins this way, the California government has recognized that it can implement a more lucrative, transparent tax collection process, while also eliminating the inefficiencies and crime associated with the current model, wherein cannabis merchants must adhere to a strictly cash-only policy.
What does the future hold?In my view, stablecoins represent the inevitable future of finance: assets that can be borrowed, spent, saved or exchanged.
The Unstoppable Trajectory: Stablecoins Are Evolving Traditional Finances
Publié le Jan 23, 2020
by Cointele | Publié le Coinage
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