The global stablecoin market has surged past $150 billion, indicating a growing demand for digital assets with relative stability. Competition in the stablecoin space has intensified, with Ripple announcing plans for a USD-backed stablecoin, joining established issuers like Tether and Circle, whose supplies have collectively expanded by nearly $10 billion in the past month.
Despite the current crypto bull market potentially influencing stablecoin growth, experts suggest that the surge in demand is driven by various factors beyond market speculation. Austin Campbell, from Columbia Business School, notes that stablecoins are increasingly being used for payments independent of crypto trading, addressing a broader market segment.
Payment use cases for stablecoins are on the rise, with platforms like Grab in Singapore now accepting USDT on TRON for services like rides and food delivery. TRON’s blockchain, known for its low transaction fees and fast processing, has become a preferred platform for stablecoin transactions, with over $54.8 billion in circulating supply.
Similarly, Noble, a digital asset issuance chain, has witnessed a surge in stablecoin payments for everyday transactions, with platforms like Cypher Wallet enabling users to spend USDC at stores accepting Mastercard.
However, challenges such as regulatory uncertainties and tax implications remain hurdles to widespread stablecoin adoption. Proposed stablecoin legislation in the U.S. faces criticism from lawmakers like Senator Elizabeth Warren, while tax regulations around stablecoins pose reporting challenges for users and entities.
Despite these challenges, experts remain optimistic about stablecoin growth as the crypto ecosystem evolves. Education and retail demand are seen as key drivers for future adoption. Tether’s partnership with Coins.ph in the Philippines aims to promote financial literacy and blockchain education, targeting diverse segments of the population.
As the learning curve progresses and retail demand increases, stablecoins are expected to play a significant role in real-world payments, paving the way for broader adoption in the future.
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Source: https://cryptocurrencynews.com/stablecoin-adoption-surges-with-payment-use-cases/
