by Marvin Dumont
Stablecoins are bringing more people into blockchain and Web 3.0 economy. However, they’re fiat-collaterized which means they have underlying challenges: The collateral assets are still subject to inflation and centralized monetary policies.
Moreover, the coins can be linked to identifying information, which reduces people’s privacy when it comes to their finances. And these coins can be frozen or destroyed by issuing entities, which reduces investors’ control over their funds.
Still, stablecoins offer key benefits: They give cryptocurrency investors the ability to avoid volatility and to temporarily position themselves outside of crypto valuations.
Stablecoins, like Apollo (APL) and other cryptocurrencies, can also greatly improve economic efficiency. For example, merchants can transact in U.S. dollars (or other fiat) and do so with greatly reduced transaction costs and much faster settlement times — thanks to blockchain.
With stablecoins, merchants won’t have to pay Mastercard and other financial entities their exorbitant fees.
Because of distributed ledger technologies (DLT), expensive and inefficient middlemen (such as Visa, PayPal, and other payment processors) can be removed from peer-to-peer, frictionless payments.
While stablecoins have limitations, they can be greatly advantageous due to the benefits of blockchain. True USD, USD Coin, and Paxos are three projects that are currently in the top 35 on CoinMarketCap. (Paxos is the official stablecoin on Apollo decentralized exchange.)
Change is slow: The vast majority of people still prefer to pay or get paid with sovereign fiats. However, stablecoins are introducing people to digital money. Many are also realizing that blockchain-powered transactions can be much more efficient than paper cash, and that expensive third parties may not be needed in most cases.
We’re already mostly a cashless society as more than 95% of monies in developed nations are electronic in nature, such as electronic funds deposited in checking and savings accounts.
Apollo Foundation believes in the power of distributed and trustless money that give users complete privacy. We’re building an unregulatable and untraceable cryptocurrency so you can pay, trade and invest with ease.
Apollo (APL) will be an all-in-one cryptocurrency that has much utility. APL will give users the ability to perform any blockchain-related task offered by mainstream cryptos, all in a single platform.
“Freedom is not a gift bestowed upon us by other men, but a right that belongs to us by the laws of God and nature.” — Benjamin Franklin