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Stablecoins: Collaboration Towards Mass Adoption Initial Survey Results October 25th, 2018

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Defining Stablecoins


Stablecoins Defined “A digital store of value which is,

“A coin that can remove

for the most part, stable to

volatility either through a

fluctuations which effect

self-sufficient protocol or

traditional mediums of exchange”

through trust upon other stores of stabilized value”

“Allows for goods and services to be priced the same over long periods of time” “Psychologically (relatively) stable in value, liquidity and most of all - belief”

“An autonomous, transparent, decentralized, scalable and stable medium of exchange in the short term which also serves and a fair store of value in the long term”


Stablecoins Defined

“A vital part of the crypto ecosystem”

“A cryptocurrency pegged to a stable asset, such as commodities or

“Enables its users to retain

fiat currencies”

their purchasing power in the short and long-term” “The industry is still branding the “A crypto asset that is backed by a stable asset”

term and it may change. I believe it must be decentralized, enforceable, flexible and fair to get true stability”


Categories of Stablecoins 37 Projects


Top 5 Stablecoin Use Cases Businesses / Projects

Merchants

ICO treasury management

Fast Payments

dApp payments

Retain Value

Gig economy / freelancers

Exchanges Convertibility

E-money providers / Financial institutions

Casual users

Cross-border money transfer

Safe haven to park cryptoholdings


Top 5 Stablecoin Use Cases “A vehicle for larger transactions and a crypto hedging instrument, allowing them to enter crypto markets while having the rapid ability to convert their funds back to fiat” “Transnational payments; Intergovernmental loans; Cooperative economy; Trading (for stablecoin's index); Money emission centers; Additional income from being a node or emission center”

“Same as for money”

“Medium of exchange for daily use”

“Reduce costs for large

“Instant worldwide payments,

transactions and

Merchant settlement,

transaction fees”

Basis of banking services to

“ICOs, will be able to raise and hold their investments / contributions in a stable cryptocurrency”

the unbanked, Digital Escrow contracts, Simplified royalty and dividend payments “


Top 5 Stablecoin Use Cases “Exchanges can remove the friction associated with fiat currency conversions” “Merchants can receive fiat equivalent payments and retain value” “Individuals can maintain their trading strategies with fewer tax implications by ‘cashing out’ into a ‘fiat equivalent’” “The use cases are for crypto investors to stabilize their ETH or BTC with Real Estate. Similarly, fiat investors can choose to invest and fiat and receive dividends paid in Ethereum” “A parallel currency of micropayments in unstable markets. A store of value where the owner is exposed to multiple currencies. A simple FX hedge for SME's/international freelancers/gig-economy. A safe-haven asset for the Crypto community. A useful accounting basis for multi-currency exposure.”


Top 5 Stablecoin Use Cases “Crypto-trading, lending, payments, settlement, maturation in financial contracts” Massive adoption as a medium of exchange (for which ensuring the stablecoin becomes a unit of account is a necessary precondition). Becoming a storage of value as a subsidiary role. “Inflation-Protection Mass adoption of permissionless cryptocurrencies and crypto-denominated digital assets Crypto-derivatives settlement currency A currency for macro and micro-payments A non-sovereign non-collateralized high-velocity reserve asset” “Store of value where increases in demand increases value”


Project-Specific Factors to Success


Project-Specific Immediate Priorities


Project-Specific Main Risks to Success What Keeps You Up at Night?


When MOON? Total Market Cap in 3 - 5 Years


Micro to Macro: Will we benefit from collaboration and governance by independent experts?


Micro to Macro: Will we benefit from collaboration and governance by independent experts? “Collaboration would help present crypto holders with a more transparent system: in which they would have more TRUST” “Many projects have different interpretations about what a stable coin should be. A cohesive message could aid exposure.” “First thing that comes to mind is the interoperability of protocols, which, I believe will be handled through shared platforms (e.g. Ether, Stellar, etc.). The ability to freely exchange stablecoins will benefit all participants. Another area to explore, would be a common standard of audits/transparency for all stablecoins (especially, collateralized ones.)” “Collaboration on best practices is crucial for the success of the stablecoin ecosystem. Stablecoin Exchange would be interesting”


Micro to Macro: Would monitoring and governance by independent experts benefit the Stablecoin ecosystem? “Expert opinions on asset backed coins will only ensure more credibility to the market.” Stablecoins are taking very different approaches. We would like to see others taking the regulatory contract more seriously.” “Independent monitoring will be an important component of keeping the various stablecoin projects “honest” and the value of their assets stable. “ “You are either centralized or you're not. Decentralization was half the reason crypto was even created. Truly Decentralized = Self-Regulating. “ “A decentralized system should work independent of governance. In truth governance only can hurt the ecosystem and stifle adoption. On the other hand acceptance can help the market blossom and that should be unregulated. The government should only protect against massive theft and fraud and nothing else.”


Micro to Macro: What Keeps Us Up At Night? - Risks to the Ecosystem


Collaboration: What Can Help Us


Evolution: Will Stablecoins play a role in the creation of new financial instruments (e.g. derivatives, hedge products, etc)?


Evolution: Will Stablecoins play a role in the creation of new financial instruments (e.g. derivatives, hedge products, etc)? “If something of value exists, people will inevitably create new financial instruments to enable them to benefit from it” “Where a stablecoin is itself based on an existing asset (a fiat currency or a commodity), there's unlikely to be new derivatives, apart from the credit insurance” “Stablecoins will make it safer to create on-chain derivatives by minimizing the risk associated with the value of the on-chain collateral (compared to products where the collateral consists of another volatile crypto asset)” “Imagine a decentralized (trustless) margin trading service or decentralized binary options platform. Hosted on a decentralized network website. If no one owns the website, no one can shut it down. Trustless = self-regulating” “If you believe in the stablecoins future - your answer might be a "YES". As financial instruments are being built on many other collateral and basic economic units (even relatively weird ones), stable coins will be the economic unit people are using - therefore hedging tools etc. will be provided to the market”


Are there any partners, associations, etc. you think we should work with?

International Monetary Fund Amadeus ISDA.org Melonport, Dharma, Centrifuge


Clear indication that now is the time to collaborate


Questions?...

Profile for stablecoin

Stable.Report's Survey Findings  

We surveyed 37 stablecoins projects about their immediate priorities, the results were presented Oct.25th at The Reform Club in London.

Stable.Report's Survey Findings  

We surveyed 37 stablecoins projects about their immediate priorities, the results were presented Oct.25th at The Reform Club in London.

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