The Future for StableCoins
Companies like Signal, Telegram and Facebook don’t want any part of the 2,500 cryptocurrencies currently existing in the crypto space. Instead, these companies have created their own cryptocurrency called StableCoin. This new crypto coin will allow people from dozens of different nations to send money to one another on messaging platforms like PayPal. One example of this that’s been made public is Facebook, with their FaceCoin service being available on both Facebook Messenger and WhatsApp. This new service is backed by StableCoin Technologies and fiat currencies like IMF’s or SDRs.
Currently, there are over two thousand crypto assets available at digital stock exchanges across the world. However, only a select few of them have been able to meet the criteria required for a safe cryptocurrency. This is what prompted companies like Telegram and Facebook to start their StableCoin projects.
A Store of Value
A Store of Value crypto asset is a digital currency that has real economic value in global markets. Cryptocurrencies have become infamous for their volatility and change in value overnight. This isn’t a good sign for financial stock exchanges like New York or London. Though they are similar to cryptocurrencies, fiat currencies are far more stable. They provide good value on the dollar and are permitted more by official stock exchanges. IMF’s is an example of a stable fiat coin.
As more companies and industries start to back fiat coins, the price of goods on FC’s will become dramatically better.
A Medium of Exchange
The Medium of Exchange has been something cryptocurrency enthusiasts have been patiently waiting for, as the argument for digital tokens to become a real medium of exchange grows, the chances of these crypto coins transforming into real money increases. However, for this to ever become a reality crypto-coins will first have to become valuable for storefronts across the globe. When this happens cryptocurrencies will be accepted as a regulated currency and will be able to be used in hundreds of metropolises around the world.
Fiat currencies have been able to serve and support the old economy, but as technology continues to push forward, cryptocurrencies will become the norm and help the new economy.
A Unit of Account
The unit of account is one of the primary functions that have been used towards showing the benefit of cryptocurrencies. When you measure something in a specific currency and compare it to one of the 2,500 crypto coins out there, you can see the comparison value on goods, services and assets. The Unit of Account is used globally for many factors in the global economy.
The UoA was put into effect by companies like Facebook and Telegram, allowing them to see the potential profits of them crafting a crypto-coin. The goal for StableCoin and these companies is to become a real global currency.
What is a True Global Currency?
The official definition for real global currency is that banking establishments must use and trade a currency with other banking institutions in the world. Out of all the global currencies, the United States dollar is the most popular and thrives every day. By the end of 2018, the US Dollar accounted for 62% of all foreign exchanges made with the central bank. However, the US Dollar won’t be able to sustain itself in the new economy and as such a new currency that is independent of any nation has to be created. However, the currency still needs to gain interest from global banks. StableCoin is the first true cryptocurrency that has the chance to become a global currency that’s accepted by banking institutions in the world. Companies like Facebook and Signal will surely invest in finding global interests that would back StableCoin. Facebook is currently looking to receive the support of MasterCard or Visa.
Any tech company that wants to offer a StableCoin service will have to comply with the same financial regulations that investment brokers or financial firms have to, this will be the only way to obtain an improved official currency for the digital age. However, banking institutions will have to readjust regulation to account for the new economy and the modern era of banking.
Facebook and other tech companies have a long way to go before their goal is accomplished through, as crypto tokens are primarily detached from the economy. Changing the minds of business owners globally will be a difficult task and theoretically might not even work. However, with the powers to be behind Facebook, there is a good chance that the tech giant will be able to create effective means of exchange for shop owners and businesses.
We have all seen the economy changing and have kept on receiving promises that digital currencies will fulfil the needs of the new global market. StableCoin is the first sign of a real digital currency becoming a reality since Bitcoin, and you can expect these tech companies to make waves with their new cryptocurrency.
Haydn Franklin
