Will Stablecoins Replace Ether?
Stacey Lum
11

Great article Stacey. Thanks for bringing my attention to it. I agree that price stability is needed to drive mass adoption of DApps. For the mean time, us early adopters will just need to struggle through the wild price swings.

A few points:

(1) Another counterargument is that Ether becomes more stable over time and the relative currency fluctuations become more acceptable.

(2) It may cause more friction to large-scale adoption if a person is required to have both Ether (for gas to execute smart contract functions) and stable tokens (to actually “pay” for whatever is being transacted for in connection with the smart contract). Also, what if the DApp in question has yet another token that represents the ownership interest in a digital asset? This is an issue that needs a cross-platform solution. Maybe Metamask can simplify this process?

(3) As an alternative, could the “base currency” of a smart contract be set in USD and it accepts the equivalent in ETH? This would be very complex from the development side and needs external currency rate data, but maybe a community project could tackle this to create a decentralized API and some code that can be used in all smart contracts to do this?