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Stablecoins to boost e-commerce growth

The introduction of Bitcoin was without a doubt a revolution. People at large didn’t think that there can be a digital currency which could be used for trading goods and services (apart from government ones, of course). We all are aware of how Laszlo Hanyecz, aka ‘the Bitcoin Pizza Guy’ traded 10,000 of Bitcoin for two Domino’s pizza. A trade which must have seem fair in the year 2010, when the price of bitcoin was only a fraction of a penny. However, in 2018 when Bitcoin crossed $20,000 dollars, we can all very imagine how that must have felt!

If one thinks price instability to limited to the just cryptocurrencies, then no that is just not the case. Government-issued currencies faced unprecedented volatility during the 2008 Financial Crisis, European Debt Crisis of 2015, and even now in the times of the pandemic.

The only thing that stopped bitcoin and its akin like ethereum to replace cash was:

a) Price volatility

b) Comply with the existing regulatory framework

Introduction of digital currencies as well as stablecoins

Stablecoins, a digital currency which is tapping into the online business market and is said to overcome the aforementioned issues which its predecessor faced.

See more: https://medium.com/akeo-tech/stablecoins-helping-in-widespread-adoption-of-blockchain-ea3a1b1ac35e

When Facebook launched Libra, suddenly the world was in an upheaval. The United States of America as well as China, both countries started diligent efforts to launch the digital version of their own fiat currencies. The interest of these countries to release their own digital coin illustrates how the world has changed.

Did you know that Facebook has changed plans for Libra? Read here — https://akeo.tech/blog/facebook-course-corrects-libra-blockchain-to-appeal-regulators/

Moreover, these digital currencies or rather stablecoins empowered with the blockchain technology are predicted to change the face of e-commerce as well as boost its growth. There just needs to be four conditions that need to come in alignment:

1) Consumer acceptance and demand

2) Suitable technology

3) Corporate giants

4) Supporting regulatory environment

DAI is being used as Euros

Ethereum-based decentralized stablecoin DAI is now spendable where VISA cards are accepted and leading stablecoin Tether (USDT) is seeing increasing use by e-commerce organization.

E-commerce picks up on Tether’s USDT

Paolo Ardoino, chief technical officer at both Tether and crypto exchange Bitfinex, said in a statement that Tether is expanding to e-commerce organizations and claimed that Tether is an effective way to improve the speed of activity, since it is faster than credit cards and traditional payment systems.

If more and more of our purchases are made online and cashless shops become more popular, why the need to exchange digital currency into paper money? Large retailers like Amazon might launch their own digital coins. Soon, we may not be wondering whether crypto will ever catch on, but whether we’re going to miss seeing George Washington’s face.

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