The recent demand for stablecoins, especially for USDT and USDC (which are available on DRGx) soared to an all-time high of $7.5 billion recently. This eye-watering amount comes in the wake of widespread financial disruption due to the Coronavirus. With companies all across the globe looking to obtain US Dollars, albeit in a tokenised form to secure ‘crypto-dollars’. The question on many observer’s minds, not least the US Federal Reserve is, once the world recovers, will there still be such a strong demand for physical currencies? Or, are we really at the dawn of seeing worldwide mass adoption of digital currencies?
That’s undoubtedly what Dragon co-founder, Paul Moynan believes,
‘the world is seeing how easy it is to access and use digital currencies and are breaking free from centralised financial systems which is understandable, as companies and individuals still remember the implications of the last financial crash. Over the coming weeks, I predict that this demand will continue, especially across emerging markets, governments, as well as their citizens, as stablecoins will empower individuals, allowing them to bypass traditional banking systems. I’m also very confident that the use of Blockchain technology by medical partners will be a key aspect to recovery, with people using the Blockchain to secure their personal data, giving the power and control back to the individuals, allowing populations to become free from fear and get back to a better standard of living.’
And it seems that stablecoins backed by metal, such as Tether Gold are also in high-demand demand, as people look for a stable store of value to counter wide swings in volatility, and with companies such as Ruby Fund offering tokenisation of Ruby assets, this year will see an explosion of tokenisation, which will spread far and wide. Governments may try to resist, but with even the most ardent opponents waking up to the flexibility, accessibility and transparency tokenisation brings. They may have no choice but to move toward utilising USDT, BTC or the inbound Chinese digital currency, or to create their own, as Wales in the UK recently announced plans to pilot one.
One thing we are set to see, however, is an increase of pace by the US and China to launch their state-backed digital currencies, to become the first to capitalise when economies recover, to become the stablecoin of choice by offering companies redeemable tokenised assets backed by USD or the Renminbi.
Once the current economic and physical challenges are overcome, we can expect to see announcements on digital currencies coming thick and fast, so make sure you keep up to date by reading the Dragon Blog, available here.
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Source: https://blog.dragon.online/covid-19-triggers-a-phenomenal-need-for-stable-coins/
