Hype vs. Reality in the Race for Stable, Global, Digital Money
Today, money is broken in some parts of the world – governments have a hard time maintaining stable value in their currencies, which dramatically reduces the wealth of the people in those nations.
The result is a severe lack of transparency and trust in many of the world’s monetary systems.
Sixteen countries today face annual inflation rates of more than 20%, whereas other economies face hyperinflation – like Venezuela, where inflation hit 80,000% in 2018.
In these situations, it is difficult (if not impossible) for people to save and protect their money, making it increasingly hard for these families to ever dig out of poverty.
The world needs a stable, digital currency that gives people autonomy and control of their money globally.
Cryptocurrencies, like Bitcoin, were developed with the goal of fulfilling this global need. But the high volatility of today’s cryptocurrencies hinders their usefulness.
Average citizens need a way to protect their money, a way to send money to/receive money from their families in other countries, and merchants need a stable means of exchange in which to do business.
- emerged to fulfill those needs; providing people a stable store of value, a unit of account, and a means of exchange.
And while the Stablecoin market has made significant strides in the past year, there is still much work to be done.
What’s needed is greater coordination amongst projects and a greater focus on the application of stablecoins to solving real-world problems in the places where they are needed the most.
Working together, 2019 can become the year that stablecoins evolve to become the usable, global, digital currency that the world so desperately needs.