Why Stablecoins Are FinTech's Biggest Disruption Yet
Sentiment: Optimistic
In a world where traditional banking systems often fall short, stablecoins have emerged as a lifeline for small enterprises, online creators, and underbanked groups such as refugees who often face financial exclusion. Many refugees, such as those from Ukraine, struggle to open bank accounts in the European Union countries. It's even more challenging for them to hold USD. Stablecoins offer them this crucial opportunity.
According to the latest data, the use of stablecoins by individual users and businesses is growing, especially in regions like Latin America, amid high inflation and economic uncertainty, with global stablecoin settlements already at 50% of the combined volume of VISA and Mastercard.
Unlocking Economic Potential
Stablecoins, digital currencies pegged to stable assets like the U.S. dollar, are revolutionizing how the unbanked and displaced populations manage their finances. For those unable to access conventional banking services, stablecoins offer a solution, allowing them to securely and easily manage funds in USD, overcoming the limitations of traditional banking systems.
Boosting Small Business Owners and Digital Creators
Stablecoins are increasingly becoming a pivotal tool for startups, e-commerce operators, and digital content creators. These groups frequently encounter difficulties in earning revenue from their audiences, often hindered by hefty transaction fees, issues with currency exchange, and slow onboarding & payment processes inherent in traditional financial systems.
By offering a reliable, cost-effective, and swift means for transactions, stablecoins simplify and enhance the revenue generation process. This allows entrepreneurs and creators to accept payments in stablecoins, steering clear of the complexities tied to standard banking methods, thus ensuring faster access to their earnings.
Redefining Financial Access with Stablecoins
DLTPAY, an Estonian startup founded in 2022, has been at the forefront of leveraging stablecoins for social good. Their platform enables underbanked communities to receive, hold, and spend stablecoins, offering a semblance of financial stability in turbulent times.
As Kenneth Kumor, the CEO notes:
At DLTPAY, we see stablecoins as a stable store of value that benefits from the speed and security of blockchain technology. They are often the only alternative to those left behind by the traditional financial system.
The Global Impact on Business
The implications of stablecoins extend beyond individuals. They represent a transformative shift in doing business, offering a decentralized alternative that is inclusive and borderless. This innovation holds the promise of a more equitable financial system, one where the unbanked are no longer sidelined.
The undeniable benefits, such as 24/7 settlement and robust security, indicate a future where stablecoin payments are not just an option, but a driving force in the landscape of payments and digital finance.
Conclusion
Stablecoins are more than just a financial tool; beyond their use in transactions they are a beacon of hope for millions of unbanked individuals and play an essential role for businesses that don't have access to banking services in U.S. dollars.
These digital currencies empower the disenfranchised and small entrepreneurs in emerging economies, offering a path to financial inclusion and stability. In a world marred by financial disparities, stablecoins shine as a force for good, heralding a new era of financial democratization.
About the Author
Enthusiastic writer whose current area of interest is the blockchain sector. When not writing, you will find her reading essays on sociology and playing/listening to music. Firm believer that crypto will transform the world.
