As interest in Bitcoin (BTC) and cryptocurrencies continues to grow, one analyst has claimed that stablecoins are a more affordable currency than BTC.
Lee Hardman, an analyst at Mitsubishi UFJ Financial Group (MUFG), one of Japan’s three largest banks, said that stablecoins are a more suitable currency than Bitcoin.
In a recent report, Hardman explained that stablecoins, which function as digital cash, have recently attracted more attention than other digital assets.
Hardman added that stablecoins better meet the requirements of a currency compared to cryptocurrencies like Bitcoin due to their price stability and ability to facilitate fast, low-cost payments.
“Stablecoins, which act as digital cash, have been attracting more attention lately.”
Stablecoins better meet the requirements of money by offering price stability and fast, low-cost payment services.
At this point, the MUFG analyst noted that Bitcoin’s price volatility is high, emphasizing that this limits its use as a daily payment method.
In contrast, he said that stablecoins are more likely to be used as a medium of exchange and payment because they are pegged to fiat currencies and their value is stable.
*This is not investment advice.
