Binance CEO: Stablecoins might spark mass adoption of cryptocurrencies

Stablecoins have been a matter of debate in the cryptocurrency sector for years. Due to the fact that they are backed by fiat currencies or other assets, they are capable of securing their value, which gives them an advantage over traditional cryptos. However, their dependence on fiat money also makes them more centralized, in a lot of people’s eyes.

However, as time goes by and crypto volatility remains as strong as ever, many are starting to consider giving stablecoins a chance. Some even believe that they could be a path to mass adoption, which is a rapidly growing sentiment.

Many of the currently existing stablecoins are based on Ethereum’s blockchain, and thanks to this fact, Ethereum has seen a massive increase in its total transfer volume.

Due to stablecoin transactions, Ethereum’s blockchain is one of the most active ones in the crypto industry, which is a rather impressive achievement. In addition to that, it is also proof that the value of stability and demand for maintaining the value of funds is in great demand.

This was also noted by the CEO of Binance, Changpeng Zhao (CZ).

The surge of Bitcoin in 2017 attracted many to the crypto world, and a lot of money was soon to follow. However, when the bear market hit in early 2018, many have transferred to Ethereum’s blockchain for its stablecoins. Now, Zhao outlined the growing sentiment that surrounds the concept of stablecoins.

Early adopters view them as something that is against the ‘main pillars’ that hold the values of the cryptocurrency industry. On the other hand, new adopters appreciate their stability, as it removes volatility and allows them to reduce the risk of dealing with cryptocurrencies, as Zhao stated.

Tether remains the dominant stablecoin

Another, potentially more concerning point is that Tether (USDT) remains the largest, most popular, and most used stablecoin to this day. Its trading volume is far above that of Bitcoin, which means that USDT managed to push through its controversies and remain on top.

According to Zhao, the rise of stablecoins’ popularity is generally a good move, as it indicates the acceptance of digital currencies and blockchain technology. Already, there is proof that governments and central banks are seeing the potential in this technology as well, although volatility remains a big issue for them, as well as for the current non-crypto users, who are used to the stability of fiat money.