Successful stablecoin-like products historically solved for a major problem, and giving yield to users wasn’t it.


Tether: shortage of USD on blockchains and emerging markets
Feng Piao Notes: shortage of local currency in 1920s Manchuria
UK Private Coinage: shortage of small-denomination GBP
Wildcat Banknotes: shortage of currency in US hinterlands and frontiers
Swedish Banknotes: shortage of SEK currency
You’ll notice that all of these tackled a common problem that led to their adoption - a shortage of currency and local liquidity.
This is why I’m so bullish on stablecoins as a category but bearish on nearly all products that label themselves as stablecoins.
Most “stablecoins” are either competing on yield (e.g. USDS) which doesn’t build transactional adoption (and thus that Holy Grail of monetary premium), or are competing in developed markets already awash in liquidity (e.g. PYUSD, USDC).
USDS0.01%
PYUSD0.04%
USDC0.01%
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 1
  • Repost
  • Share
Comment
Add a comment
Add a comment
MuzammilYasin
· 12h ago
hehe thanks for the update kr lo to get the top of my number is a little too baby I have a lot but it was good to get it out of
Reply0
  • Pinned