The cryptocurrency industry has been around for a long time has been in search of Gateway Use Cases to accelerate adoption.
News broke on Friday (August 23) that Wyoming is reportedly developing its own exchange rate system pegged to the U.S. dollar. Stable Coin to use for consumer payments. Wyoming Stable Token could be launched as soon as in the first quarter of 2025. Now, observers are wondering whether stablecoins could serve as a better on-ramp for users to enter the digital asset space.
A few days earlier, on Wednesday (August 21), the Latin American e-commerce giant Free market launched a new exchange rate system pegged to the US dollar Stable Coin in Brazil through its financial branch, Flea market.
The stablecoin, called Meli Dollar, can be bought and sold through the Mercado Pago app without incurring transaction fees during the initial phase with the fee-free structure aimed at not only reducing the impact of fluctuations in the Brazilian real currency but also increasing the scalability of the asset.
Mercado Libre has been trying to integrate cryptocurrency solutions into its ecosystem for years, previously introducing Parts marketa cryptocurrency used for purchases and cashback, on its platform in 2022 as part of its loyalty program, while integrating bitcoin, Ether and the stablecoin Pax Dollar (USDP) for payments.
Stablecoins, like the Meli Dollar or Wyoming Stable Token, can be integrated into existing digital wallets, making them easy to use for those already familiar with mobile payments. As more merchants begin to potentially accept stablecoins as paymentUsers will have more opportunities to interact with digital assets in a way that feels familiar and secure. This could lead to a gradual increase in the adoption of cryptocurrencies among end users, including businesses that may have been hesitant to enter the market.
Read also: What CFOs Should Know About the Growing Use of Stablecoins
Bridging the gap between traditional finance and digital assets in B2B
As Latin America rushes to innovate with cryptocurrency, the European Union Crypto-asset markets law (MiCA) is moving forward with regulation of the stablecoin landscape.
It’s in the B2B sector especially where stablecoins—and their regulated use and policy frameworks—hold particular promise as a tool for streamlining cross-border transactions.
“It is important to know that crypto it’s not just Bitcoin, Doge and NFT,” Sheraz Shereresponsible for payments at Solana Foundationtold PYMNTS in May. “…Blockchains are Really alternative rails for payments and financial assets.
“The problem is that the technology is not user-friendly,” Shere added. “Everything was designed by engineers… to be very technology-centric and not use-case or user-experience-centric.”
Traditional international payment methodsOnline transactions, such as wire transfers, can be slow, expensive, and subject to various regulatory hurdles. Stablecoins, however, offer a more efficient alternative. Transactions can be completed almost instantly, with lower fees and fewer intermediaries.
Since stablecoins are pegged to a stable asset, businesses can use them to transact without worrying about currency fluctuations that could affect the final amount received or paid.
“People are rewiring their companies around payments”, Thread CEO Jim McCarthy explained to PYMNTS in April. “The winners of the future will really understand that payments are at the heart of everything they do.”
See also: Instant Payments vs. Stablecoins: The Race to Dominate Real-Time Transactions
For example, a US-based company could use a dollar-pegged stablecoin to pay a supplier in Europe. The transaction would be completed in minutes rather than days, with lower fees and no risk of exchange rate fluctuations. This not only improves cash flow management, but also allows companies to operate more efficiently in a global market.
The only requirement is that the stablecoin complies with the regulations of each country. This is why the European Central Bank (ECB) is conducting exploratory work on new technologies for the wholesale settlement of central bank money (ntwCeBM).
“To fully exploit the potential of the evolving payments landscape and ongoing initiatives, the ECB is planning a special workshop on innovations in B2B payments and the role that central bank money could play,” the ECB said. in a statement“The potential of private businesses such as eMoney tokens (stablecoins), commercial bank money tokens (CBMT) and other similar forms will also be discussed.”
A dedicated market contact group, the New technologies for wholesale trade regulation Contact group (NTW-CG) has been established, the ECB said.
Always on the side of consumers and retailers thingsthe ECB digital euro The stablecoin is facing resistance from Germany, whose citizens have growing concerns about the privacy and security of their money.
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