Once a niche in the world of cryptocurrencies, the Stablecoins have reached the world’s projectors this year, encouraging analysts and initiates of the industry to declare that the time for digital assets have come.
Wall Street took note. In August, analysts of the main investment bank Goldman Sachs have nicknamed the last months “in the summer of the stablecoins”.
Unlike very volatile cryptocurrencies like Bitcoin or Ethereum, the stabbed are set 1: 1 to fiduciary currencies such as the US dollar or the Hong Kong dollar, or on other reserve assets. Designed to be up to their names, they aim to combine the effectiveness of digital assets with the reliability of traditional money – as long as the currency behind them remains strong.
But while stablecoins can, in principle, be set at any trustee currency, more than 99% are supported by the US dollar or the assets denominated in dollars – far exceeding around 50% of the greenback in world payments and the 58% share in world exchange reserves.
