In today’s altcoin news, we take a look on why almost every new stablecoin that emerges on the market such as the Gemini Dollar, Circle Coin, and Paxos that are currently competing against Tether, is built on the Ethereum blockchain network.
All of these new stablecoins are fully transparent and regulated which is why they now obtained banking services.
Building a stablecoin on top of the Ethereum blockchain network improves the compatibility of a certain asset with the current infrastructure. For example, the Coinbase team explained:
“Improved send and receive. Two Ethereum wallets can quickly send and receive any amount of USDC at any time of day. Large transfers for business purposes become as easy as small e-commerce payments. Consumers can use the Coinbase app to send USDC to someone while remaining confident the value is stable.’’
Also, it’s much easier for exchanges to integrate stablecoins without having to create a new infrastructure that will support stablecoins. Also, the usage of the Ethereum blockchain will help and enable developers to develop programs that can easily facilitate the stablecoin transactions. Even more importantly, users can track the entire circulation of tokens since they are stored in smart contracts.
The Gemini team also emphasized that using the Ethereum blockchain brings a lot of benefits to the Gemini token.
The stablecoin market is in a surge right now and there are plenty of competitors against the oldest stablecoin out there Tether because they are more transparent, regulated and compliant with the current infrastructure. In the following years, the crypto market is likely to turn to projects that are more practical and more transparent such as these new stablecoins.
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