I believe every fiat currency will have at least 2 affiliated stablecoins.
1. A “Spending Stablecoin” focused on local commerce (think USDT)
2. A “Savings Stablecoin” focused on yield generation. Will most likely be a tokenized government bond.
Much like power laws in traditional FX, many of these currencies may not even come close to rivaling the usage of USDT or USDC, but they will provide a means of interacting with local economies in a way that breaks down economic barriers for locals and for tourists.
Before the “why would someone want to put a shit currency onchain” crowd starts to chirp - it is important to recognize two things:
1. Many governments will WANT this to happen because if they fail to tokenize their currency, they risk full dollarization of their economy. It’a eat or be eaten.
2. If there is demand for niche currency usage, it is economically beneficial to have local currencies onchain. So much money is unnecessarily being drained from global commerce by middlemen who do not need to exist (especially in the case of long tail currency Fx). More onchain currency means less middlemen and more money into the pockets of the folks that worked hard to earn it.
FYI - if I was a gambling man - I would bet on @EtherfuseDave to power almost all of these local Savings Stablecoins.
1. A “Spending Stablecoin” focused on local commerce (think USDT)
2. A “Savings Stablecoin” focused on yield generation. Will most likely be a tokenized government bond.
Much like power laws in traditional FX, many of these currencies may not even come close to rivaling the usage of USDT or USDC, but they will provide a means of interacting with local economies in a way that breaks down economic barriers for locals and for tourists.
Before the “why would someone want to put a shit currency onchain” crowd starts to chirp - it is important to recognize two things:
1. Many governments will WANT this to happen because if they fail to tokenize their currency, they risk full dollarization of their economy. It’a eat or be eaten.
2. If there is demand for niche currency usage, it is economically beneficial to have local currencies onchain. So much money is unnecessarily being drained from global commerce by middlemen who do not need to exist (especially in the case of long tail currency Fx). More onchain currency means less middlemen and more money into the pockets of the folks that worked hard to earn it.
FYI - if I was a gambling man - I would bet on @EtherfuseDave to power almost all of these local Savings Stablecoins.
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