Stablecoin usage for retail consumers can provide a wide range of value propositions for the modern consumer.
From everyday purchases and engaging in entertainment, to entire countries retaining more of their wealth, stablecoin usage for retail consumers can provide a wide range of value propositions for the modern consumer.
Benefits
- Easier online shopping experiences
- Connecting the unbanked
- Greater consumer autonomy
- Inflation protection
- Easier and cheaper individual cross-border transactions
Easier Online Shopping
As stablecoins become a standard for online merchants, consumers will be able to enjoy a more seamless shopping experience. Typing in debit card numbers, risking private information, and other e-commerce inconveniences will become a thing of the past as instant purchases through digital wallets become the norm.
With two billion people in the world today currently unbanked, the potential for banking them and enabling them to transact is vast. The ability to scale and allow people to spend, swap and save money, via stablecoins, will cause a massive change in how the world works. Those without access, being given access, provides them all with what is essentially a basic human right and will be the solution a lot of people have needed.
The near-instant transaction speeds will make every online merchant process simpler, faster, and more gratifying for online shoppers.
Such stablecoins make it easier to gain exposure to the support commodities. You may not be able to buy a physical gold bar or a barrel of oil but you can purchase a stablecoin which is backed by it.
Connecting The Unbanked
Having access to a bank account is a privilege in many countries around the world, as currently 2 BILLION people in the world today are currently unbanked. Moreover, many banking systems still follow archaic practices and are difficult to navigate when a problem occurs – stablecoins solve both of these issues. As stablecoins are on the blockchain, only a wallet is needed to interact with them. There is no need for a long list of documents and proof of what consumers do or do not own.
Immigrants, homeless people, those who do not meet specific criteria, and many who fall into these groups are not afforded the luxury of an account by banks worldwide. . With a stablecoin, a wallet and no third-party intermediary, these people now have access to money which they can spend, save and send how, when and where they want to.
Stablecoins put power and access into everyone’s hands. These groups of people, ‘the unbanked’ or ‘the bankless’, will benefit and have access to a basic yet essential part of life which allows them to engage with modern financial society.
Connecting The Unbanked
Having access to a bank account is a privilege in many countries around the world, as currently 2 BILLION people in the world today are currently unbanked. Moreover, many banking systems still follow archaic practices and are difficult to navigate when a problem occurs – stablecoins solve both of these issues. As stablecoins are on the blockchain, only a wallet is needed to interact with them. There is no need for a long list of documents and proof of what consumers do or do not own.
Immigrants, homeless people, those who do not meet specific criteria, and many who fall into these groups are not afforded the luxury of an account by banks worldwide. . With a stablecoin, a wallet and no third-party intermediary, these people now have access to money which they can spend, save and send how, when and where they want to.
Stablecoins put power and access into everyone’s hands. These groups of people, ‘the unbanked’ or ‘the bankless’, will benefit and have access to a basic yet essential part of life which allows them to engage with modern financial society.
Consumer Autonomy
Consumers gain more autonomy over their finances due to payments being made and settled in real-time and not having to rely on a middle entity such as a bank, which can deny, remove or even revoke access to their capital. The ability to self-govern your finances is the primary catalyst as to why stablecoins have widely emerged as the favourite alternative in the not-too-distant future.
Stablecoins put power and access into everyone’s hands. These groups of people, ‘the unbanked’ or ‘the bankless’, will benefit and have access to a basic yet essential part of life which allows them to engage with modern financial society.
Inflation Protection
For everyday consumers living in countries with volatile currency inflation, stablecoins offer a safe and easy alternative to protect one’s wealth due to their inherent stability and value retention. Inflation has ruined entire economies , and stablecoins seek to be the best form of protection.
Cross-Border Transactions
Stablecoins make cross-border transactions simple and cheap for everyday people. This can become especially important for communities that rely on these transitions for daily life.
For example, in countries such as Tonga, remittances make up almost half of the country’s GDP. However, much of that money is lost in expensive fees and exchange rates. Due to much lower fees, a greater proportion of the total amount sent would reach families and loved ones. When settlements are paid out, it is common for them not to be delivered immediately as they are subject to normal bank hours. By employing stablecoins, parties receiving compensation would be able to receive their money instantly.
If you want to learn more about stablecoins you can check out our full Poundtoken stablecoin guide here guide to stablecoins.
