If you ask a pro-crypto lawmaker or industry leader, they will tell you that Stablecoins are trying to take over the world.
Earlier this month, the Senate passed a Landmark bill To formally legalize the issuance of stubcoin in the United States, the fragments promised by those involved, signing the law, unlocking the promise of instantaneous blockchain payments in every corner of the US economy.
Crypto leaders predicted that if the federal government gives it green light it would be hundreds of ridiculous things. Thousands– Soon it flooded the market and was able to challenge the control of Giants Tether (USDT) and Circle (USDC).
But others aren’t that bullish. Analysts at Moody’s, one of the world’s top credit rating agencies, argue that Stablecoin’s current hype could be heavily exaggerated. Even if the relevant laws pass in the US, they will be in the way of widespread adoption of assets.
“Cristiano Bench Richli, Moody’s senior analyst specializing in Moody’s digital assets, said: Decryption. “We can’t forget that is one thing about issuing Stablecoins, but having a viable business model for Stablecoins is another thing.”
Why be careful? That comes down to someone who says the booster is in a hurry to adopt the stub coin. Two common sectors recently called out are the finances of the institution and major retail. Large banks will rush to create their own stubcoins to instantly resolve cross-border payments, and there is debate, leading retailers will want to spice up their own dollar-earned tokens and dodge the costly payment processing fees.
However, both use cases face a major hurdle due to Ventricelli’s estimation.
Take a big bank. Certainly they I did it Create your own stubcoin to streamline your payments. However, creating a currency covered in new dollars backed by audited Fiat reserves would be time-intensive and costly for simpler remedies like simpler remedies (recently deployed) that launch tokenized bank deposits. JP Morgan And I was teased HSBC and German banks) might do.
“Do you really need stubcoins to do that?” Ventricelli asked banks who are looking for payment transfers to be more efficient. “Or is there another solution?”
Then there’s the problem with retail silly, but it’s even more thorny. I like it but Amazon and Walmart Benchrisli is not sure such a plan will eventually come to fruition, as it reportedly is investigating whether to release its own crypto token.
If top retailers end up launching stubcoins to control their own payment rails, consumers will have to hold too many different tokens. Each one is likely to act as a voucher within a closed system, Moody’s Analyst said. One stub coin to get your morning coffee at Starbucks. One stub coin for buying groceries at Walmart. Another thing to pay for online shopping on Amazon.
According to Ventricelli, the situation will soon become unacceptable. Especially given the fact that swapping one Stablecoin for another would require a robust liquidity pool of all possible token pairings. It can be something like decentralized finance, or defi, and luka incentives will promote sowing of pools of crypto token pairs.
“If you want to exchange one asset for another, you need a deep market,” says Ventricelli. “Do you inevitably predict that we have a (deep) market where we can exchange Amazon Stablecoin for Walmart Stablecoin? Maybe not.”
If such a liquidity pool is done do not have It will come to fruition and the situation becomes even more complicated.
“You need to convert Amazon Stablecoin to Fiat and buy Walmart Stablecoin with Fiat,” says Ventricelli. “It’s hard to argue that we’re solving real problems like this.”
Key players likely encouraged by the potentially pressing passage of stable laws in the US over the last few weeks Around it world We have begun exploring the issuance of our own Fiat Page crypto tokens. But curiosity and commitment are two very different things.
“The fact that something is possible now doesn’t necessarily mean that everyone is in a hurry to do it,” Benchrischri said. “This is something we hear from the media, but it’s not necessarily the way we think about it.”
Edited by Andrew Hayward