The adoption and regulation of Stablecoins is currently a hot topic amongst regulators across the G20 board. DAI and Tether seem to be making good progress despite the uncertainty brought about by Facebook’s Libra which the U.S congress has put on hold.
The DAI and Tether crypto coins have been adopted informal ecosystems especially in E-commerce. DAI, for instance, is now accessible to the European market through a financial inclusive network known as 2Gether. Tether, on the other hand, is being adopted by merchants looking to use crypto coins and shield themselves against the volatility as well.
DAI’s Prospects in Europe through 2Gether
This digital asset is the first cryptocurrency to be included within 2Gether’s ecosystem. The target market, mostly Europe, can now leverage DAI as a means of transaction in E.U stores that are integrated with 2Gether.
In addition, 2Gether’s end goal is perfectly matched by DAI’s decentralized and stable nature. The platform will allow users to trade DAI against 13 other crypto coins at insignificant costs. Furthermore, they can also send their DAI digital coins to external wallets as well.
The firm explained,
“The addition of Dai to 2gether’s crypto catalog offers the possibility of operating with a cryptocurrency that’s both decentralized and stable at the same time.”
Tether (USDT); The E-Commerce Crypto Coin
According to the firm’s CTO, Paolo Ardoino, USDT coin is slowly becoming a favorite for E-commerce operators who see value in cryptocurrency. This is mainly attributed to its stability compared to other crypto assets and efficient nature when ranked against card payment processing.
“Merchants need to have a stablecoin in order to protect their businesses from the volatility of other crypto assets such as Bitcoin. Tether is being widely used by merchants and e-commerce outfits but as this is a new trend we are still collecting and evaluating the data.”
Paolo also noted the project’s competitive edge on stability, an issue that has kept merchants away from cryptocurrencies. This has fueled Tether’s adoption across the crypto and merchant industries with some Analysts speculating a match with the likes of BTC and ETH in the near future.
However, Stablecoins still remain at the risk of being regulated out of existence given the current discussions in the U.S congress. German regulators have also been vocal about not allowing Stablecoins given the risk they pose in disrupting existing financial systems.
The German government declared:
“It will be ensured that stablecoins do not establish themselves as an alternative to state currencies and thus call into question the existing monetary system.”