Digital currencies and payment systems have taken the world by storm by significantly benefiting customers and society with increased efficiency, broader financial inclusion, and more innovation.
The acceptance of this new financial paradigm is being determined by its appeal as a store of value and a means of payment.
Stablecoins, for example, are the new form of digital money built over robust decentralized payment infrastructure. They have gained immense popularity and stablecoins worth more than $185 billion are circulating in the open market.
This number indicates stablecoins are evolving as a tool replacing fiat by being the potential currency of international E-commerce. Its efficiency in handling payments is making it the right tool for future eCom transactions. Moreover, businesses are jumping into stablecoins payments as an alternative to fiat payments.
The Rising Adoption of Stablecoins and their application in E-commerce
A rising number of businesses in a variety of industries, from major tech to airlines, are embracing stablecoins and accepting them as an official mode of payment for their goods and services. For instance, the Amazon-owned streaming platform Twitch accepts stablecoins including USDC, BUSD, and GUSD alongside other cryptocurrencies.
Despite the fact that there are several stablecoins on the market, it has become more crucial to select the right ones. Finding a stablecoin that satisfies all regulatory and transparency requirements is challenging. EURST, on the other hand, is a stablecoin that is gaining popularity due to its fair reserve and backing rules. It is one of the most transparent 100% USD-backed Euro stablecoin making strides in the market.
Even online travel services like CheapAir are using crypto payment portals to accept stablecoin and crypto payments. With the growing adoption, the payment giant Visa has also revealed that it was testing a scheme with Crypto.com to accept the stablecoin USDC on its payment network.
This adoption of stablecoins by major companies shows the efficiency and ease of use that stablecoins provide as a mode of payment. Furthermore, stablecoin’s long-term competitive advantages in the fast-expanding digital payment service space has also convinced developing countries to use stablecoin payments to inject stability into their economies.
Stablecoins need more reliable stability for eCom acceptance
Although stablecoins are gaining popularity due to their efficiency, there are major concerns around their stability and how they maintain their value. Regulators have for long questioned the stability of these coins and their opaque asset reserve policies.
Tether, for example, was under the scrutiny of regulators and users for its inability to disclose its actual reserve assets that helped USDT maintain its peg with the US dollar.
Keeping these concerns in mind, it has become increasingly important that eCommerce companies assess the stability of the stablecoins they choose to use for their digital payments. Apart from the reserve and price stability, it is also important that eComs use a coin that has the regulators’ approval to operate in the market.
As challenging as it can be to find such a stablecoin, EURST has proven otherwise. It is a stablecoin that is gaining popularity due to its fair reserve and backing rules. It is one of the most transparent, 100% USD-backed Euro stablecoin making strides in the market.
Issued on the Ethereum network, EURST’s advanced blockchain capabilities enable users to conduct faster and more secure transactions. It keeps the funds in an escrow account to ensure the security and stability of the EURST tokens that users hold, and also allows anyone to mint and redeem at any time. Moreover, the coin is totally transparent by being audited in real-time where users can track the funds held in escrow at any given moment.
Regulations are the way to go
Although some E-commerce companies are already accepting stablecoins, the majority is still skeptical. To achieve mass adoption of stablecoins or crypto, there may be a need to find a middle ground where stable coins are regulated to the point that they operate in a legitimate manner.
On that note, stablecoins such as EURST are laying a transparent framework for their backing and reserves policies. They bring to the world the true potential of stablecoins as a payment infrastructure for future E-commerce companies.
Source: https://en.cryptonomist.ch/2022/04/07/role-of-stablecoins-future-of-e-commerce/