Stablecoins, also known as collateralized digital currencies, is a digital form of money pegged to one or more real-world assets like gold, silver, or a basket of other assets.
These digital currencies are less volatile than typical digital currencies due to being backed by reserve assets. These stablecoins offer the advantages of digital coins, such as real-time processing, security, and privacy of transactions, but come without the severe volatility that cryptocurrencies are known for today. Paywong enables payments in a multitude of stablecoins, including USDT and USDC.
Stablecoins use a wide variety of assets as a peg, including US dollars, euros, or a basket of currencies. They can also be used to buy gold, silver, oil, or other commodities.
Stablecoins are the future of cryptocurrencies. Cryptocurrencies are volatile, and exchanges are constantly struggling to balance supply and demand. This volatility is one of the reasons why the everyday person shies away from Bitcoin or other altcoins. Cryptocurrencies have massive potential, but stability is needed in order for the DeFi sector to flourish.
Advantages of Stablecoins
- Stability: Being pegged to price-stable assets means that stablecoins have very little volatility, meaning that they can be used for day-to-day purchases without significant price changes over time.
- Speed: Using DLT (Distributed Ledger Technology), payments made using stablecoins are faster and more seamless when compared with payments made using fiat currency and CeFi.
- Lower transaction fees: Compared with financial entities that have high fees for international payments and large sums of money, stablecoins are a cheaper alternative. Paywong is currently offering lifetime reduced transaction fees of only 0.5%, regardless of the size and international nature of the payment! All you need to do is join our waitlist.
All in all, one can say that stablecoins are the future of e-commerce. They carry the same benefits as other digital currencies without losing their stability — meaning that users can make cross-border payments quickly, securely, and affordably. The usage of stablecoins also means that consumers are able to directly interact with merchants, instead of using middlemen such as Visa or Mastercard to make payments. This reduces the cost for both parties.
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