“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.
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.