Co-founder of Australian based cryptocurrency exchange CoinJar has expressed that stablecoin is a game changer for the business and that the potential use cases are rather more than we know, The Australian financial Review reports.
Stablecoins are cryptocurrencies created to combat the volatility of the market by making a token that may be converted into different tokens but with a set rate. The most popular stablecoin is Tether, the tenth most traded cryptocurrency within the world by market volume, according to CoinMarketcap. However, Tether has had its fair share of troubles starting from transparency and manipulation allegations. Other stablecoins that have popped up to replace Tether includes Gemini USD, owned by the Winklevoss twins, Paxos standard and True USD.
Tan, who isn't actively running Melbourne based CoinJar, said stablecoins, which helps you “transfer money around the crypto ecosystem at a stable rate” is “on everyone’s lips,” adding that “there’s an entire lot of applications or use-cases that might come out of it.”
The Australian entrepreneur argues that the stablecoin idea could be attracting both retail and institutional investors now, but it’s been around for a while.
“In London, I see a lot of finance people getting into it. People with 10, 20 years of forex experience are trying their hand at it. It’s drawing a lot of people from traditional financial circles, just because it’s interesting, it’s intriguing, there’s a lot of upside to it.”
CoinJar will also take into account the chance of floating a stable currency, although the market has a number of players in that circle, Tan noted in the report. He went on to add:
“There are a few Australian stablecoins already – I think there are three or four out there. I think many of them would be happy for us to utilize them. The question is, how do we try to leverage some of these things to provide a better user experience for our users?”
For many investors looking at stablecoins, the lure is that the ability to participate in the crypto market without being exposed to the acute volatility that comes with it. For others, it’s the desire to use cryptocurrencies as a medium of exchange and not simply an object of speculation—which bitcoin is notoriously known for.
Tan believes, while bitcoin can be used by a large majority of users for speculation, quite a number of holders use it as a medium of exchange and store of value. He went on to state that the perception around bitcoin continues to change and this has affected how the market views it.
Tan’s company is progressing to expand into Europe, that he says CoinJar prefers as it’s a lot of regulated and particularly interesting to them, compared to Asia, where there is ” fragmentation – all the different regulators, the cross-border challenge.”
Earlier this year, CoinJar launched Australia’s first cryptocurrency index fund, providing wholesale investors with internet assets of at least AUD$2.5 million exposure to cryptocurrency whereas shifting the custody responsibility to CoinJar.
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