Stablecoins have come out as a new force in the crypto market. While they have seen some criticism, many blockchain developers are looking to them as a key opportunity for mass adoption of crypto technology. At the Global Blockchain Forum in San Francisco last week, stablecoins were a popular topic to point to as a big part of crypto's future.
Chepicap had a chance to sit down with Jing Sun, head of IoTeX, an Internet of Things (IOT) developer and investment fund, and she mentioned that IoT technology is the best use of blockchain technology, and IoT technologies would most likely utilize stablecoins for their payment layer.
While a blockchain that powers any IoT infrastructure would be a private blockchain, and one that powers any cryptocurrency a public blockchain, these two technologies are by nature integratable.
In particular, Jing described secure decentralized data collection and enhanced ‘machine to machine’ communication as functions IoT products could enable. For these purposes, Jing mentions that using a ‘stablecoin really makes sense,’ because they are perfect for ‘enabling easy micropayments’ without the issue of massive fluctuations in value.
Stablecoins 'big aspect' of Crypto 2.0
Evan Chi of Applicature, which is a company that develops use cases for blockchain technology is in a good position to see what the exciting new developments in crypto products are, and he was eager to bring up stablecoins as something to be excited about.
Chi predicts stablecoins will be a big aspect of Crypto 2.0, in part because they offer a ‘psychological advantage’ over cryptotokens which fluctuate wildly in value, and thus could act as a stepping stone for mass adoption of more decentralized cryptocurrencies.
There seems to be a new stable coin on the market... Called Bitcoin— Applicature (@Applicature) October 10, 2018
Chi acknowledged that for now, to get invested in stablecoin ventures ‘you have to believe in blockchain as a whole, you have to believe in digital assets being a thing of the future,’ but made it clear that for anyone who is willing to get into them, there are some real reasons to be excited about the possibilities of security tokens.
Read more: Report: stablecoins are a stepping stone to wider crypto adoption
Chi teased that ‘there’s some really crazy use cases coming out’ though couldn’t go into details as he is 'under NDA', a non disclosure agreement. The uses Chi did talk about included, 'tying tokens to gold, silver, diamonds, antiques, future revenue, equity… a lot of really interesting models' which gives anyone who is interested in stablecoins a lot to watch with optimism.
While many crypto purists are skeptical of stablecoins because of their structural reliance on fiat currency, it is clear that many are looking to them as readily adaptable digital currency for real world use. If stablecoins can become a truly usable product for real world applications, they may show tremendous growth in value and certainly growth in volume for this class of token.
Overall, if these ventures prove to be as successful as some hope, they could pave the way for more mainstream investment in all types of cryptotokens, which makes the near future of stablecoins something any crypto investor should be watching closely.