Why stable-coins (and not bitcoin) is the real trojan horse for traditional finance
Total market-cap of Stable-coins just hit $150 Billion and shows no signs of slowing and is expected to reach a mind-blowing $1 trillion by 2030.
The basic definition of stable-coins is that their price is stable relative to US dollar and other fiat currencies unlike say Bitcoin or Ethereum which keep swinging wildly.
Now, this price stability of the coins is achieved in two ways
The first and most popular stable-coins like tether and USDC accept bank deposits in US dollars and issue stable-coin tokens in return.
The second option is a via backing with crypto-collateral with help of smart contracts , a concept pioneered by maker Dao and its DAI protocol.
This brilliant innovation has change the face of crypto-currency markets completely and now is on the verge of disrupting traditional banking.
The disruption of Stable-coins
Since stable-coins are blockchain based they offer permission-less access like that of bitcoin, but also offer the price stability of US dollar, this combines best of both worlds.
Anyone in the world can receive stable-coins like USDT / USDT / DAI etc with just a crypto wallet app without hassle of complex KYC regulations. This creates a friction-less experience for users which helping stable coin usage by leaps and bounds
Stable-coin banking Revolution
The traditional fintech companies like paypal / venmo etc want to enter a geography they had to spend enormous sums of money for KYC validations and getting appropiate licenses etc.