Stablecoins are getting more popular. So popular that they could bring about the mass adoption of Bitcoin as giant non-financial companies, such as Facebook and Samsung, get ready to participate in the crypto market.
Facebook and Samsung Are Joining the Stablecoin Craze
A new Binance Research report on the evolution of stablecoins, released on May 15, 2019, underscores the mounting interest of large companies in stablecoins.
Allegedly, these companies are already creating stablecoins and other tradable blockchain-based crypto assets instruments. Thus, they are integrating blockchain technology into their digital wallets and payment systems.
Stablecoins minted by large companies such as Facebook could significantly disrupt the payment and crypto industry worldwide, the study concludes.
Imagine the implications if Facebook starts using its allegedly planned digital coin for payment purposes across Messenger, WhatsApp, and Instagram. According to the report,
These non-financial companies (e.g., Facebook or Samsung) are likely to be less risk-averse than traditional financial companies, and have greater incentive to disrupt the payments industry, with the added ability to execute at a faster, scalable pace.
As a result, these companies may help to define future key growth drivers for both the global payment and the digital asset industry.”
The report also points out the critical shortcomings of stablecoins. Unlike Bitcoin technology, for example, a central authority will develop and control the Facebook coin, and its ledger will not be immutable. Users will undoubtedly be required to link their Facebook identity to their ‘FBCoin’ wallets.
In this regard, depending on whether the blockchain is private or public, and whether there is a central authority, the report came up with four scenarios, specified as follows:
- Private with a central authority: the blockchain would not be immutable by design (e.g.,