According to a Bloomberg publication on January 22, small merchants in Asia and Europe are turning to stable currencies to import and export products, seeing cryptocurrencies backed by some type of asset as an alternative to escape from bureaucracy and high costs. of transaction.
Going back to the beginning of the cryptocurrency idea
Stable currencies were initially created to ensure that exchange users could use "real money" in transactions, even if banking institutions closed accounts on the exchange platform. Over time, the concept was lost and stable currencies began to be sold as a "less volatile" alternative to cryptocurrencies, being considered by companies in the traditional financial market, such as JP Morgan and its JPM Coin.
However, as reported by Bloomberg, small merchants located in Asia and Europe are negotiating the most diverse types of products, from baby utensils to furniture, using stable currencies such as USD Coin and Tether.
Singapore company QCP Capital, which helps merchants with such transactions, says that audience handles $ 10 million daily. The Russian B2BinPay also states that the daily transactions made by this audience also reach millions of US dollars, although it did not provide specific figures.
One of the managers of QCP Capital, Darius Sit, stated:
“They are using stable currencies as an alternative to banks. This represents the cryptocurrency returning to its roots «.
However, this is not an ideological interest. According to Aaron Brown, investor and writer in the Opinion column of Bloomberg:
"Users do not necessarily believe in the long-term value of cryptocurrencies, they only believe that stable currencies will maintain the value long enough until they settle and clear the transaction."
Nic Carter, data analyst and co-founder of the CoinMetrics tool, said that this use of stablecoins is not surprising. According to him:
"Stable currencies adapt perfectly to these gray areas of the market, with business models that involve transactions in more than one jurisdiction, in areas where the financial sector may be unreliable or simply inefficient."
Sit concludes that, in countries like Indonesia, traders even prefer stable currencies like USD Coin over fiat currencies.