Don’t We Have Too Many Stablecoins Already?

A new project called the fuel platform just launched its mainnet few days ago and without wasting no time they launched a new stable coin with ticker USDF, I guess that means Fuel USD, may be. The moment I saw it I couldn’t help but notice that there are lots of stablecoins in existence, almost every project’s blockchain has a stablecoin. A lot went through my mind, like, if they are too many stablecoins will it affect its stability? Will it be harder to control its stability? Ever since what happened to UST, luna’s stablecoin, happened to UST, I have been scared of trusting any stablecoins.

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Here are my thoughts, crypto is expected to be widely adopted by the world in the future, and just like the world, most countries have their own native currencies, also known as fiat. But with cryptocurrencies, their prices are volatile and that can’t affect the way we use it for goods and services, therefore, we need a stablecoin. Stablecoin is supposed to be like fiat but better, this way, it’s expected to be decentralized and less controlled by more centralised entities. It reduces the high risk of devaluation against goods and services and financing.

We need as much stablecoins as they can be, while Bitcoin and altcoin will be used as investment and a store of value, the stablecoin will be used for purchase of goods and services just like the fiat system. We need them just as we need fiat, at least with its transparency and technology, monetary fraud will be traced easily and probably controlled.