Cryptocurrency exchange Coinbase believes that stablecoins backed by the US dollar and other fiat currencies will increase access to financial services and Web3.
Coinbase has posted a series of tweets stating that stablecoins will be the backbone of financial services in the future. They will play an important role in the changing financial landscape and will be a key component of more revolutionary changes as digital currencies are adopted.
“Stablecoins provide a bridge between the traditional financial system and the crypto economy, allowing fiat currencies to exist in a form that can move more freely and efficiently across blockchains,” notes Coinbase.
The company notes that the value of many cryptocurrencies can fluctuate every minute, “so owning a stablecoin like USDC gives buyers and sellers the stability and confidence they need in times of volatility.”
According to the platform, the reliability of stablecoins comes from the fact that these digital currencies are backed by the US dollar or assets with an equivalent fair value held in accounts with US regulated financial institutions.
Coinbase believes that stablecoins will be useful for both retail users and developers and large organizations. In addition, they can serve as an entrance to the world of Web3.
Recall that the USD Coin (USDC) stablecoin, released in 2018, is a joint project of the Coinbase exchange and Circle.