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Adoption of stablecoins seems to be currently picking up steam and both the DAI and Tether’s USDT are at the forefront.
The cryptocurrency sector is largely an exciting one and there are always new events every day, which shows that there are growth and development being recorded. While crypto adoption is improving, there is a lot more focus on increasing the use cases for Bitcoin (BTC) than most of the others. However now, stablecoins including DAI and Tether’s USDT, are starting to game some traction with traditional institutions for everyday use cases.
According to reports, the DAI stablecoin can now be used pretty much anywhere cards from payment giant Visa are accepted. This is as a result of efforts from 2Gether Global, a collaborative financial service which recently included support for DAI on its platform. Now, all of 2Gether’s users can use their cards to transact free of charge with the DAI, just as easily as they would with fiat. 2Gether claimed:
“The addition of Dai to 2Gether’s crypto catalog offers the possibility of operating with a cryptocurrency that’s both decentralized and stable at the same time.”
In addition, the 2Gether platform will now also give its customers the opportunity to use the DAI to transact about 13 other digital currencies, buying and selling without any charges. Users will also be able to send DAI to and from external addresses.
USDT’s Way in E-Commerce
Tether currently has plans to increase as much as possible, the adoption of its USDT and it plans to do this through several e-commerce organizations. Tether and Bitfinex Chief Technical Officer, Paolo Ardoino, has said that this will not only increase use cases for stablecoins, but is also a lot more efficient, because it is significantly faster than all other traditional payment methods. Ardoino has also added that businesses that use stablecoins have a better chance of survival because it’s a lot more stable than other popular digital currencies.
“Merchants need to have a stablecoin in order to protect their business from the volatility of other crypto assets such as Bitcoin. Tether is being widely used by merchants and e-commerce outfits but as this is a new trend, we are still collecting and evaluating the data,” said he.
Already, more than a few analysts have suggested that in recent times, the USDT’s popularity has spiked and could potentially catch up with bigger assets like Ether (ETH) and BTC. However, there’s the ever-present chance that this popularity could very easily be nipped in the bud, by regulations not just in the United States, but elsewhere.
At the moment, the U.S. Congress has received a bill from Sylvia Garcia representing Texas’29th congressional district, dubbed the “Stablecoins are Securities Act of 2019”. The purpose of this bill is to largely regulate stablecoins and if successful, all stablecoins would be officially categorized as securities.
In the same vein, the German government wants the adoption of stablecoins to be discouraged because as an alternative to fiat, it could “call into question the existing monetary system.”