Stablecoins to Play Key Role in Crypto Adoption, Says New Report

Stablecoins will play a key role in mainstream adoption of crypto technologies, according to a report published by California-based stablecoin startup Reserve on Wednesday, Feb. 20.

The report, entitled "The State of Stablecoins 2019: Hype vs. Reality in the Race for Stable, Global, Digital Money" is based on information collected from 40 crypto and stablecoin firms.

According to the document, Samman "Was commissioned to research the stablecoin landscape and then independently report his findings for the broader industry to learn from."

"The development of stablecoins, price-stable cryptocurrencies, asset-backed cryptocurrencies etc. is likely to play a critical role in how this new economy achieves mainstream adoption."

Stablecoins potentially promise to be a multi-trillion dollar marketplace, the report states.

The report further notes the potential role of major companies such as Facebook in facilitating the adoption of stablecoins.

Late last year, reports surfaced that the social media giant is considering launching a stablecoin for WhatsApp users.

In another one of its conclusions, the report ventures that if a massively adopted stablecoin is pegged to dollars, it could increase the total supply of fiat money and thus contribute to inflation and further instability.

Major crypto enthusiasts bet on stablecoins as a less volatile and more predictable cryptocurrency that could possibly draw the attention of institutional investors.

The Winklevoss twins, who earlier launched their own dollar-backed stablecoin, the Gemini dollar, believe that stablecoins and tokenized securities are the future of crypto innovation.