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Bitcoin Cash - Does it Need Stablecoin?

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Written by   10
2 months ago

Last few years there are many countries coming up with the digital currency backed by the gold. And there are some of the cryptocurrencies following the same suit too.

For example, TRON has the TrueUSD that does the same. So tether is a digital token which is backed by gold. And it goes from blockchain to another for the dollar pegged value. TrueUSD gets deployed on chains with such potential.

In short you can say that it is truly a stablecoin that follows or is backed by the USD value. For ETH based blockchain with such USD pegged value. And those blockchains have token as USDT and USDC. Each with different stablecoin blockchain deployed.

Why should you have stablecoin version of BCH?

BCH has low fees. BCH has better circulation and BCH is likely to get the smart chain. However having the stablecoin makes it easy for the investor to park their money during the market downtime and hold the value from falling further or when they wish to do the swap.

Image Credit: Fxempire

There is one smart use for the stablecoin especially in industry where assets are sold at the fixed value. And it can be used to lock the sold value and keep it from changing the next day. Like you got the stocks today for fixed asset value and want to process the next day so the lack of stablecoin could cause it from changing.

Another instance where it needs the stablecoin is the way it can be used for everyday usage. Say you have assets that you want to sell for the stable value of USD. And you can use it as it can help protect you from any local FIAT value changes.

So you can see there is a strong reason why the stablecoins are needed any successful blockchains ecosystem.

Tether or TrueUSD or any other implementation?

I am not much into the detail for the deployment of the stablecoin. So I am not sure if the Tether, TrueUSD or any other implementation would be good for the working for blockchain.

However I know one thing for sure that having the implementation deployed and being in use would open up more business and the chains working up.

I assume the current limitations are because the BCH does not have the smart chains like BSC and ETH which limits itself from having the stablecoin infrastructure in it's ecosystem.

Conclusion

What do you think of the stablecoins on BCH blockchain? Do you think it is necessary to have them?

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