Facebook’s Libra Serves as Signal That Fintech Firms Like Visa, Paypal, Booking.Com Were Eager to Explore Stablecoins, Blockchain Advisor Argues
By Omar Faridi
Stablecoins are digital assets pegged 1-to-1 (in most cases) to major world currencies like the US dollar or British pound (GBP), or even gold.
In most cases, stablecoin tokens are based on blockchain or some type of distributed ledger technology (DLT). The largest amount or percentage of stablecoins in circulation have been launched on the Ethereum (ETH) blockchain network, the world’s second-largest digital asset platform.
Last month, it was reported that stablecoins reached and surpassed $10 billion in market capitalization for the very first time.
Some have argued that stablecoins could reach a $1 trillion market cap in five years. In February 2019, the stablecoin market was valued at only $2.5 billion, but has managed to grow at a rate of 70% per year to currently over $10 billion.
Photo courtesy of David Shares.