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Stablecoin: The Next Big Thing in E-Commerce

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Have you ever heard about Bitcoin Pizza Day? In 2010, Laszlo Hanyecz, a U.S.-based programmer, agreed to pay somebody 10,000 bitcoins in exchange for 2 Domino’s pizzas. The two pizzas he bought that day were worth $30 on May 22, 2010. 10,000 bitcoins amount to a staggering $100 million today!

That was the first instance when goods were purchased using cryptocurrency.

Moral of the story: Bitcoin and its brethren, being a notoriously volatile tender of exchange, are far from being accepted as a currency fit for day-to-day purchases today. Still, the potential is acknowledged, the issues persist. But do we have a solution? Let’s watch out.

Interest in the digital currency was further piqued when the Federal Reserve announced that it was investigating the possibility of issuing its own digital coin. Federal Reserve Governor Lael Brainard noted the “potential for digitalization to deliver greater value and convenience at lower cost”. Just as Amazon and Paypal revolutionized the way people shopped online, digital payment solutions backed by blockchain technologies could be the next great revolution in e-commerce. While we find banks shying away from supporting cryptocurrencies, few central Banks across the globe seem to be intent on issuing their own brand of CBDCs- Central Bank Digital Currency.

Despite all the hype about cryptocurrencies subverting the financial systems and making cash out-of-date, the DLT powered popular tokens are too wayward and complicated to go mainstream. Moreover, cryptocurrencies are seen more as an investment avenue rather than a spendable currency owing to the expected future returns of coins like Bitcoin, Ethereum, and others. Another area of concern is, unlike fiat currency, cryptocurrencies aren’t backed or governed by any monetary........

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