menu
event 02 February 2023

Stablecoins are here to stay

Stablecoins
StablR Euro

While adoption of stablecoins has been primarily by traders and investors, we recognize increasing use in payments going forward as infrastructure is built out. Meanwhile, all the benefits of its usage are recognized in the retail industry, where stablecoins move towards integration and adoption.

Stablecoins as a Payment Method

In a market research given by Deloitte, the US retailers were asked what would be the likeliness of adopting digital tokens as a medium of exchange. Very impressive to say at least, 55% of merchants declared that they are partnering with third-party payment processors to enable digital currency payments. The remainder are divided between building it in-house (23%) and only keeping the traditional payments (22%). Hereby, the conclusion is that 75% of the organizations involved in this survey are already preparing for this step.

75% of merchants plan to accept stablecoins payments in the next 24 months

Most merchants surveyed believe customer interest in accepting cryptocurrency as payment will increase over the next year, with nearly 75% reporting plans to accept stablecoin payments and almost the same reporting plans to accept cryptocurrency payments, both within the next 24 months. This trend will likely continue as other countries face the need for globalization and investors look for alternatives to fiat currency.

 

Worldwide Integration

The London based payments company, Checkout.com has recently adopted USDC payments, stablecoin pegged to the US dollar. The feature will allow businesses to accept payments from customers in USDC, creating an online payment method that can be used 24 hours a day, everyday of the year. The company is offering the new payment method through a partnership with Fireblocks, a crypto security firm that helps merchants accept crypto payments. This is yet another step towards making cryptocurrency payments more mainstream and accessible to the general public. Following, the B2B payment company, Stripe, has also launched its own stablecoin payment feature.

Traditional payments vs Stablecoins

Traditional payment systems take 48 to 72 hours for a transaction to complete but with stablecoins, it takes only five seconds. This is a significant improvement when also taking into account that blockchains operate regardless of holiday days. In addition, the transactions costs are significantly lower: 3% of total amount when using traditional system vs 5$ for stablecoins payments. With regards to payments denominated in other currencies, the conversion is easy and straightforward for any other coin or fiat counterpart. However, in the case of traditional system, the users are exposed to conversion fees depending on the amount that is transferred.

Hereby, a stablecoin is something that can be used for everyday payment like a credit card or cash, it’s a digital currency with price stability and low volatility.

Higher yield

Nevertheless, stablecoins can also be used for DeFi experience, where interest accounts can achieve a 5%-10% yield. Meanwhile, regarding the traditional finance, earning of such proportion cannot be achieved.

Last but not least…

By issuing its own price-stable crypto asset (stablecoin), StablR provides an easy and low-risk access into the world of CeFi and DeFi to experience the opportunity of quicker money transfers and minimizing financial service fees.

StablR issues a Euro stablecoin (EURR), that is designed to be 100% collateralized, always fully transparent, applicable in a cross-chain network, and with the lowest counterparty risk in the market that is supported by its existing technology.

Our insight of the stable coin world

Stay up to date with the latest advancements in the cryptocurrency market and identify the news that can potentially make your business smarter. Find out the role of crypto assets in the financial sector and to newest regulations governing crypto assets.