“Like putting money in a bank account”: ‘Stablecoin’ may be the new crypto alternative for conservative investors

One of the biggest criticisms of cryptocurrency is its volatility. But now, digital asset firm Circle Internet Financial has pitched investors a more stable alternative called ‘Stablecoin.’

Experts anticipate the new coin will appeal to conservative investors. USDC, the company is behind “Stablecoin,” say the coin offers a as much as 7 percent profits annually.

“It is like putting money in a bank account”

John Griffin from the University of Texas told Bloomberg investing in Stablecoin is similar to putting money in a regular bank account.

“If the account is paying out a higher yield than bank account yields, it is not merely invested in some risk-free asset,” he added.

Crypto volatility

Stablecoin’s rising popularity comes after Bitcoin’s recent massive crash.

The world’s leading crypto traded at just over $33,000, falling a huge 13%.

Other cryptocurrencies including  Ethereum and Dogecoin also suffered the slump.

This all followed Bitcoin climbing more than 8 percent following a tweet from Elon Musk.

Edward Moya from Oanda Corp says “Bitcoin has two problems – ESG and decreasing reliance on China, both of which could take some time.”

Crypto goes mainstream

As cryptocurrency starts to break into mainstream finance, many traditional players aren’t happy.

Denmark’s central bank governor recently attacked crypto’s legitimacy, suggesting it’s ‘little more than a fad.’

Lars Rohde said if technology giants start “invading the currency area” and the means of transaction, then “that could be very interesting and maybe also a real threat to the autonomy and independence of central banks.”

He’s the latest central banker to warn against the disappearance of cash and the dominance of digital payments.