[BlockTwits Live] Crypto Expo Asia 2022 - Stablecoins: The Bridge to Digital Value

BlockTwits reporting live at Crypto Expo Asia 2022 in Singapore. James Toh, the Business Development Director of Coinstore, shares his view on stablecoins as the bridge to digital value.

Before knowing where to keep our crypto assets, James suggests that we first need to understand more about stablecoins. The launch of stablecoin is mainly due to the high price volatility and lack of price stability. For instance, the first cryptocurrency ‘Bitcoin’ is not an ideal coin to keep value as its price always goes up and down.

James proceeds to share the uses and benefits of stablecoins: minimal volatility, staking function to earn interest, the potential for daily-use currency, promotes decentralised forex, transfer money around the world with a much lesser fee, and higher transfer cap. Cryptocurrency provides convenience to transact 24-7 since there is no rest day in the crypto world. Also, stablecoins improve the efficiency of p2p and recurring payment.

Nevertheless, there are doubts arising from stablecoins, such as counterparty risk, lower liquidity concerns, difficulty to acquire large quantities of underlying asset, concerns from local government, lack of awareness, and low understanding of the coin.

James also touches on the impact of digital yuan on stablecoins. When digital yuan was first launched by China, it resulted in panic selling of stablecoins, and also led to a shock in the cryptocurrency market.

Despite this, there is still legitimacy of stablecoins as they have gained mass adoption by financial institutions and banking companies around the world, says USDC which was launched by Coinbase.

Lastly, James suggests we could store unused crypto in cold wallet or exchange them for fiat currency, and avoid leverage trading. What he is looking forward to, is the growth and future of cryptocurrency.

Reported by: [BlockTwits] Nell