Stablecoin was designed to be an alternative currency, a store of value that would empower people to make peer-to-peer payments while bypassing the costly intermediaries of the financial industry. Stablecoins take care of the volatility problem, which can reach 10% in a few hours.
Beyond that, for frequent traders, stablecoins are an excellent way to park funds while waiting for the following buying opportunity. And as exchange trading fees decrease substantially for high-volume traders, the back-and-forth doesn’t cut too far into profits.
Stablecoins may potentially find use in the financial services industry. Stablecoins, for example, might help create a secure, online environment for peer-to-peer (P2P) transactions without the need to utilize a volatile cryptocurrency like bitcoin or pay fees to transfer money into local currencies.
