Report Shows That Stablecoins Will Play A Key Role In Mainstream Crypto Adoption

California-based stablecoin Startup Reserve completed their report which states that stablecoins will play a key role in the mainstream adoption of cryptocurrencies and technology which is why we read into it some more in today’s blockchain news.

‘’The State of Stablecoins 2019: Hype Vs. Reality in the Race for Stable, Global, Digital Money’’ is the title of the report which is based on the information that was collected for more than 40 crypto stablecoins companies. The author of the report George Samman was initially commissioned to research the landscape and then write the report that will serve the industry to learn something new.

The study analyzes some of the key features of the stablecoins which according to the author, will lead to mass adoption:

 “The development of stablecoins, price-stable cryptocurrencies, asset-backed cryptocurrencies etc. is likely to play a critical role in how this new economy achieves mainstream adoption.”

Also, according to the authors, some of the developing countries that battle hyperinflation will be the first to embrace stablecoins because they promise a multi-trillion dollar marketplace.

The potential role of some major companies such as Facebook is described in the report; explain that last year the social media giant stated they consider the launch of stablecoins for WhatsApp users. In the near future, it is expected for the US dollar to be the most tokenized liquid asset in the crypto market.

However, the report notes that if the stablecoins are pegged to the dollar it could eventually increase the supply of fiat money and will even lead to inflation:

 “The ideal stablecoin should be able to withstand market volatility, be affordable to maintain within a value range, have easily comprehensible stability parameters and be easy to observe for traders and other market participants.’’