Coinjar Co-founder Affirms the Obvious: Stablecoins Are “The Craze” This Year
Stablecoins are definitely trending now. You can see that after the launch of Gemini USD (GUSD) and Circle USD Coin (USDC), the market hyped these assets. As the old king, Tether (USDT) is slowly losing its place, everybody is keen on launching the next hit in the market.
Now, Asher Tan, the co-founder of Coinjar, has affirmed that these tokens are a craze at the moment. Why? Because they help you to transfer money and crypto around the ecosystem at a stable rate and many use cases will still come out.
For Tan, this new asset class of digital currencies comes from the ability to digitize fiat currency so it can be used in this new market. Therefore, there is hype because everybody is excited now and stablecoins are very popular.
He affirms that a lot of people from many different ages are now using cryptocurrencies and that they are very diverse. Some people have years of experience trading and some others are young. In any case, they are inspired by it.
However, there are also many critics of these tokens that affirm that they cannot be classified as cryptos because they lack the decentralization is supposed to be so important for them and they are not neutral and can be censored.
These people, however, seem to ignore the fact that most cryptocurrencies which are called like this are not very decentralized and that the developers often act as central authorities for them, especially in the case of many ERC20 tokens that were created because Initial Coin Offerings (ICOs) were made.
Some organizations, like Japan’s Financial Services Agency (FSA), have declined to regulate these assets mostly because they work in a different manner and can be differentiated from other cryptos.
Tan has also affirmed that only a few Australian stablecoins are ready for the market, so the ones with a better user experience will end up being the most important ones.
He also talked that many people used Bitcoin as a store of value, but with the bear market, maybe more people will use stablecoins instead.
Tan Also Talked About Other Aspects Of The Crypto Industry
Apart from talking about stablecoins, Tan has also talked about the regulatory bridge arbitrage and the state of the global crypto market. He has affirmed, for instance, that despite the appearance of massive trading volume in Asia, the region lacks a single unified market and is very fragmented, which has caused him to criticize it.
According to him, Europe would be the ideal place for a expansion as Coinjar has a lot to benefit from the permissive attitude of many governments in the region which contrasts with the harsh regulation from the United States.
The main point to get a European integration, in fact, would be to find ways to work efficiently within the continent.
Coinjar is an Australia-based crypto exchange that is based in Melbourne.