Stablecoins enable further adoption of cryptocurrencies by the traditional businesses while minimizing the risks related to their volatility. The operations of the firm’s treasuries become more convenient with the added level of predictability, and it’s just easier to move such currency across borders.
Pricing in stablecoins will become possible with the pegging mechanism. Such an approach may become an independent unit of account over time across the globe. Examples include a basket of currencies to have a representative global currency, or a fixed amount of a desirable subject: time, minerals, water.
Stablecoins are becoming the store of value over the longer period because of the lower associated volatility levels. In this light, stablecoins are also providing easier and more secure access to the commonly used store-of-value items, such as commodities, currencies, and assets. Additionally, stablecoins can win the loyalty of depositors, where banks start adding a negative interest.
Stablecoins lower the role of cryptocurrencies in speculative transactions, effectively minimizing the risks related to holding funds in cryptoassets. Therefore, if a business runs smart contracts, the operation costs will become predictable and the infrastructure management easier.
The WEBPESO (WPHP) token is a full-reserve stable cryptocurrency built on the blockchain network.