Big Take The Promise of Stablecoin: A Cryptocurrency Meant to Be Boring
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Jul 30, 2025 Emily Mason, Bloomberg's cryptocurrency reporter, dives into the exciting world of stablecoins. She explains their design and function, revealing how they stabilize the often volatile crypto market. The discussion covers the significance of the recent Genius Act, a pivotal move in U.S. cryptocurrency legislation. Mason also addresses the implications for consumers and banks, while pondering the regulatory challenges ahead. Plus, she touches on how artificial intelligence could boost innovation and productivity in the financial sector.
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What Are Stablecoins?
- Stablecoins are digital assets designed to maintain a stable price, usually pegged to assets like the U.S. dollar.
- They avoid the volatility typical of cryptocurrencies like Bitcoin by being backed one-to-one by real assets or currency reserves.
Stablecoins Speed Cross-Border Payments
- Stablecoins allow instant, 24/7 money transfers without intermediaries, making cross-border payments cheaper and faster.
- This bypasses slow correspondent banking systems, improving efficiency for businesses globally.
Consumer Use in Volatile Economies
- Stablecoins are valuable for consumers in countries with volatile currencies or harder access to U.S. bank accounts.
- They enable easier payment of contractors abroad and provide access to a stable currency alternative.