Stablecoin is a brand-new player that has carved out its own niche in the world of digital currency and tokens.
A cryptocurrency known as stablecoin is linked to an external asset class (usually fiat currency or exchange-traded commodities). By tying it to a traditional real-world item, the major goal is to reduce price swings.
Due to features like vast worldwide borderlessness, fast and affordable transactions, and transparent transactions, stablecoin has grown in popularity as a form of payment. User-centric stablecoin development services are available, and they may be integrated into digital applications to provide worldwide, frictionless blockchain-based payment.
Top 5 Use-cases of stablecoin
Safe Haven Asset
The price volatility of cryptocurrencies, in general, is the sole feature that restricts their use. Stablecoins were therefore created with the goal of maintaining a constant price. Due to this characteristic, it is the best choice for storing your money without the risk of daily fluctuation. Because they even give full custody of their money, cryptocurrency traders do not see any risk of loss. Stablecoin qualifies as a safe haven asset thanks to its self-custody and price stability features.
Payments
Stablecoin payments powered by blockchain are quickly taking up in the market. Walmart developed its own stablecoin and is requesting a patent to use it as their preferred payment method. Accepting stablecoins as a payment method has several advantages for company. One benefit is that it would reduce the transaction charge, which is currently taken up by financial institutions and middlemen, to 2-3%. Facebook is also moving in this approach to use blockchain technology in order to take advantage of decreased transaction fees.
Remittance
The cross-border payment and remittance platforms are where the fundamental issue with conventional operating rests. Supervisors encounter difficulties when sending money home. The international transaction cost is simply too high because it can occasionally strain the sender's monthly budget. The majority of Asian workers have been observed to send home about $200 per month, and the international charge is calculated at $12, which is often half of their daily income.
Since there are no third parties involved in the transaction, using stablecoins for cross-border payments can speed up transactions and reduce transaction fees.
Payroll
MNCs are now thinking about adopting stablecoins to deliver salary. Nippon Yusen Kaisha, a Japanese shipping firm, launched such a proposal in November 2018 to pay its employees with USD-pegged stablecoins. This strategy would make it easier for seafarers to manage their money and would speed up the process of sending money back to their hometowns in local currencies. Stablecoins allowed the workers, who arrived from various countries, to save a significant amount of money that would have otherwise been spent heavily on paying exorbitant international fees.
Settlement
The settlement process is frequently delayed because settlement banks and other third-party settlement providers must adhere to regular business hours. Therefore, it may take days to finish a typical process if you go through any settlement process. Stablecoins, on the other hand, perform well in this situation because they are always available thanks to the blockchain. Because there is no central authority with defined office hours, settlements can be made right away.
Conclusion
Stablecoins solve the issue of price fluctuation in crypto assets, which is why they are becoming more and more popular around the world.
Utilize the knowledge of our technical experts if you also want to capitalise on the potential of stablecoins and the rising market demand.
Blocktech Brew is the stablecoin development company and we provide services for developing stablecoins for businesses, assisting you in entering the lucrative stablecoin industry.
Set up a call with one of our domain-specific specialists to discuss.