What are stable coins and why can they influence the crypto economy?

Although the concept of a non-volatil stable cryptovoltaic currency is often found in economic literature, there are many organizational and algorithmic obstacles associated with this technology.

Stable coins, or “stablecoins” as they are also called in the crypto community, are digital tokens that are designed to provide measurable stability and security.

These tokens would have extremely wide and significant consequences for the whole fintech world.

Any use that requires low volatility to be viable – such as consumer credit – is simply impossible to imagine in a currency that fluctuates by 10-20 percent a day like bitcoin and other.

If you send money from one country to another using bitcoin, it’s very likely that the price trend over the period of one block confirmation (the time it takes for your transaction to be included in the block) will be greater than the commission charged by Western Union or PayPal.

Trusts are extremely flexible and reliable financial instruments that are subject to daily audits and provide full protection to coin holders in accordance with the law.

Stable coins can quickly become the widely accepted international currency of the future. They can be a fundamental component of the next generation economy.

It will be interesting to see how different teams will take on this technical and operational task of scaling up stable coins.