Are Stablecoins the Answer?

[Zhan Kang Stephen Wu]

What’s their purpose? Do they solve the problem with cryptocurrencies or do they defeat the purpose?

[Zhan Kang Stephen Wu]

Stablecoins can be seen as potentially defeating some of the core principles and purposes of cryptocurrencies. Cryptocurrencies like Bitcoin were designed to provide decentralized, borderless, and censorship-resistant digital currencies, free from the influence of centralized authorities. However, stablecoins, which are pegged to traditional assets or fiat currencies, introduce elements of centralization and reliance on external entities for stability. This centralized control contradicts the original vision of decentralized cryptocurrencies, as stablecoins depend on trusted third parties and can be subject to regulatory scrutiny and potential manipulation. Thus, while stablecoins offer stability and utility in certain use cases, they deviate from the true spirit of decentralization and can undermine the fundamental principles of cryptocurrencies.

[Janyaporn Kengtrong]

Stablecoins offer potential benefits in terms of stability and efficiency for certain use cases. However, careful evaluation of the specific stablecoin, its underlying assets, transparency, and regulatory compliance is essential before considering them as a comprehensive solution to address the volatility of cryptocurrencies.

[Yiqi Gong]

Stablecoins pegged to fiat currencies enable users to transact and hold digital assets while still having the familiarity and stability of traditional currencies. This allows individuals and businesses to engage in cryptocurrency-based activities without being subject to the price fluctuations of other cryptocurrencies. I think it will become a new dominated trend.

[Janyaporn Kengtrong]

Stablecoins, with their peg to fiat currencies, provide stability and familiarity to users, allowing them to transact in digital assets without being exposed to the volatility of other cryptocurrencies. This can be particularly beneficial for businesses and individuals seeking a reliable medium of exchange. As stablecoins gain popularity, they are likely to become a dominant trend in the cryptocurrency space.