Founder of Avalanche (AVAX): Adoption of stablecoins will mark the success of the crypto industry

The founder of Avalanche believes DeFi and the crypto ecosystem will really succeed if and when stablecoins dominate global market capitalization.

Adoption of stablecoins is a necessity for the cryptocurrency ecosystem

What’s the best thing the cryptocurrency ecosystem could do to ensure its global success? Increase the domination stablecoins.

Anyone who disagrees is free to argue with Emin Gün Sirer, CEO of Ava Labs, the company behind the success of the Avalanche Protocol, who told Business Insider that stability must reign in the world of decentralized currencies if they are to be attractive to the general public.

Stablecoins will be the next ‘big thing’

S’addressing At Business Insider, Emin Gün Sirer assured that the real success of cryptocurrencies as a social phenomenon will come when a fiat-anchored stablecoin becomes the coin No. 1 in terms of market capitalization.

« We’re not nearly done until the number one token is a stablecoin. This is my indicator of real success.»

At present, Tether (USDT) is the largest stablecoin in the crypto world. Its market capitalization is around $ 69,600 million, to rank fifth on the list of most valuable cryptocurrencies.

USD Coin is a stablecoin maintained by Circle and Coinbase, with a market cap of $ 32,600 million, but with a friendlier relationship with US regulators.

Emin Gün Sirer expects the use of stablecoins to increase, especially among DeFi users. The advantage of these coins would be precisely that users could control the value they would trade.

“People want to borrow, and they want there to be more stablecoins, so I expect the world’s ties, the world’s circles, to grow; and it’s gonna be really exciting. “

A difficult step to reach

Although cryptocurrencies were designed by cypherpunks looking for a way to escape the traditional financial system, stablecoin issuers took advantage of all technological decentralized cryptocurrencies and used it to bridge the gap to the financial system. inherited.

So, in general, a fiat stablecoin is fully backed by cash, cash equivalents or assets that ensure that each coin is equivalent to a specific unit of fiat currency. However, imagine a dollar for 1 USDC token, 1 euro for 1 stasis or 1 gram of gold for 1 Digix.

But this situation means that stablecoins tend to depend on a centralized entity. For example, USDT is controlled by Tether Inc, USDC by Circle, BUSD by Binance, and DAI by a decentralized autonomous organization.

In addition to the aforementioned philosophical issues, the centralization of stablecoins is a weakness that could allow for a tighter regulatory system, and even government control. Circle has already frozen coins USDC and blacklisted wallets to comply with the law, Tether has had to pay hefty fines, and regulators are looking for ways to give stablecoin issuers similar treatment to stablecoins. traditional banks.

Thomas Poirier

I’m sure blockchain and cryptocurrency are the future, and I want to get this idea across to everyone because the more people who believe in cryptocurrency, the sooner the future will come.

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