Is Binance the world’s biggest Bitcoin exchange?
Hugh Visit for- Bitcoin exchange
Binance has unveiled a series of new products and features relating to stable coins — with the world’s largest cryptocurrency exchange describing these digital assets as “an efficient fiat gateway into crypto.”
Stable coins are often pegged with a fiat currency, meaning one unit can equate directly to 1 euro or $1. With new coins emerging all the time, the industry is evolving quickly, prompting the company to launch a stable coin market in which its consumers can benefit from pairings with other cryptocurrencies.
The crypto-only exchange now supports five stable coins in total: Paxos Standard Token (PAX), TrueUSD (TUSD), USD Coin (USDC), StableUSD (USDS) and Tether (USDT).
As reported by Coin telegraph, Binance CEO Changpeng Zhao has been vocal about his support for stable coins, as he believes they offer “far more freedom than traditional fiat for users” and help regulators maintain control. In November, the exchange introduced its combined Stable coin Market, creating a place where a broader range of assets can be used as base pairs.
Binance asserts that “it is now often more efficient to buy cryptocurrency via stable coins than through a fiat exchange” — not least because of how stable coins are less susceptible to high transaction fees and market volatility.
The benefits
In explaining the rationale behind using stable coins, Binance says that it can help eliminate the confusion that all too often swirls around conversion rates. Given how the prices of other coins and tokens can change dramatically in a matter of minutes, this increasingly popular form of cryptocurrency could help deliver the certainty that many everyday consumers want and expect. Over time, it could also enable the industry to build a compelling case for mainstream adoption — addressing some concerns that many digital assets amount to a store of value rather than a currency that can be used for everyday purchases.
Chasing mainstream adoption
Binance’s move into stable coins is in reaction to growing interest from the crypto community. predicted that stable coins are going to play an instrumental role in the mainstream adoption of this technology — something that has proven elusive so far.
The report forecasts that countries that have suffered from hyperinflation in the past, when fiat currencies suffered devaluation to the extent to which everyday essentials become unaffordable, are the likeliest to embrace stable coins first. And several nations are currently in the throes of hyperinflation, including Venezuela, Zimbabwe and Angola.