The founder of the African Stubcoin Association said he supports Bitmex founder Arthur Hayes’ claim that a third of Nigeria’s GDP is being implemented in USDT. He emphasized that stubcoin is an important economic lifeline for emerging markets and marginalized communities.
Stablecoins are economical lifelines
The founder of Nigerian Stubcoin Platform has supported Bitmex founder Arthur Hayes in a recent blog that a third of Nigeria’s gross domestic product (GDP) is being implemented at USDT. Also, according to Nathaniel Less, the leader of Africa’s Stubcoin network, Heiss’ claims are no surprise. This is because Stubrecoin has proven to be an “economic lifeline” for emerging markets and countries with broken financial systems.
From proving that it’s a more effective way to pay for imports to rescue what’s financially excluded, stubcoins like USDT show themselves as a life-changing financial innovation. Luz said to Bitcoin.com, explaining why Stablecoins are becoming increasingly popular in Africa.
They act as a financial lifeline for individuals who need to make quick payments to import goods. They serve as economic lifelines for marginalized people, especially those who have no access to funds through traditional banking apps. They are economic lifelines for third world countries, emerging markets and those who are marginalized by major financial players. Stablecoins do not discriminate.
In his recent blog post, Hayes revealed that board members of unknown major US banks highlighted the threat posed by stubcoin to a business model that has gained billions of dollars in financial services. According to Hayes, this board member believes Stablecoins are inevitable. Therefore, financial institutions must adapt or sink.
While the number of US-based financial institutions is growing, they are eagerly researching the launch of their own stubcoin, these ambitions have largely led to the elusive promise of a clear regulatory framework. Of the two ridiculous bills currently in front of US lawmakers, only the guidelines and establishment of national innovation for the US stubcoin (Genius) Act could clear important legislative hurdles.
stablecoins are ready to go beyond Africa
Analysts argue that Floodgate is truly open to businesses seeking to implement Stablecoin offerings only after a decisive and comprehensive law has been enacted. However, unlike the US, which until recently pursued adversarial policies towards digital assets, Africa’s Stablecoins already have “75% of the standard of full adoption in a ready market.” According to Luz, regulations are the only missing part of the puzzle, but some African governments are finally awakening to this reality.
“The current Nigerian government can see crypto and pro-minded parties in Nigeria are completely legal, and government agencies like the SEC can see government agencies like the ‘Crypto-Smart, Nigerian Strong Strong’ initiative to educate and increase the adoption of cryptocurrency. It’s Africa time.
Regarding his association’s role in promoting the use of stubcoin in Africa, Luz explained that the African Stablecoin network focuses on adoption of Stablecoin in Africa. As part of this mission, the network is set to hold a meeting in July, attracting stakeholders in the finance and fintech industries.
Regarding the lessons that can be drawn from the ongoing process to establish a ridiculous regulatory regime in the United States, Luz said the African government must distinguish between stable and cryptocurrency.
“Just as the US began with stable and genius, financial regulators in Nigeria and other African countries must establish separate regulations for stable ones,” Luz said.