Image: Crypto coins on wood planks, by QuoteInspector.com, via Flickr
While the stablecoin market has made significant strides in
the past year, there is still much work and progress to be done in order for
these to reach their full potential, according to a new report.
The State of Stablecoins 2019, February 2019
Titled the State
of Stablecoins 2019: Hype vs. Reality in the Race for Stable, Global, Digital
Money, the independent report was presented earlier this week by a
consortium of companies in the cryptocurrency and stablecoin markets including
Reserve, Arrongton XRP Capital, Blocktower, AmaZix, and Brave New Coin.
The report delves into potential design issues that could
hinder USD-pegged stablecoins and notes the need for stablecoins to move beyond
a USD peg in order to become truly censorship resistant and decentralized.
“The holy grail of stablecoins is to become the decentralized
central bank for the Internet. Only with true decentralization can the needs of
people in emerging markets – especially those living under authoritarian
regimes – be met without fear of these stable currencies being shut down,” the
“While stability is currently assumed to be tethered to the
USD, in the future it is expected that the stability of stablecoins will be
tied to a diversified basket of tokenized assets rather than the USD.”
According to Nevin Freeman, CEO of Reserve, in order for
stablecoins to fulfill their promise, there needs to be greater collaboration amongst
projects and greater focus on their applications to solving real-world problems
in the places where they are needed the most.
“Working together, 2019 can become the year that stablecoins
evolve to become the usable,