Is Stablecoin is the next big thing in the eCommerce domain making transactions seamless on the blockchain platforms?

Digital currencies like Bitcoin have been in the purview of the speculators and the coders and now the Federal Reserve has also made announcements about issuing its own digital currencies. There is even news circulating that the US might even mint its own cryptocurrencies as well. The eCommerce domain might accept the stablecoins for transacting due to its high potential for being digitized and being able to deliver much greater value and convenience at affordable prices. This potential of the digital currencies has even helped in provoking the interest of the traditionally risk-averse institutions.

According to the nomenclature of the stablecoins it can be easily distinguished itself from some of the more popular and volatile cryptocurrencies like Bitcoin. It has been made possible only for being stable in terms of the price. Moreover, the best thing is that the stablecoins come with their own potentials and opportunities which makes it the most liked and the safest digital asset.

How the use of stablecoins  can revolutionize the eCommerce transaction procedure?

With the capability of distinguishing itself from the more popular and volatile cryptocurrencies, the stablecoins enhances both the efficiency and reach in the eCommerce domain. In the existing functional financial ecosystem, there are several inefficiencies that include dependencies on the third parties. These third parties can come in form of credit card service providers who can charge you up to 3% for every transaction done for online shopping. In the current market, the transactions might even cross $100 million in a very short span of time.

Use of the stablecoins for transacting purpose in the eCommerce domain can be fruitful enough due to the fact that the stablecoins have successfully adopted various approaches in an attempt to solve the price volatility issues. The latest issue that was solved recently was Facebook’s new project Libra which was yet-to-be-released and was quite controversial because of being tied up with the short-term government securities.

Can stablecoins act better than credit cards for making payments?

According to crypto enthusiasts, cryptocurrencies do have the potential to enhance both the efficiency and the customer reach of the eCommerce domain. However, the existing financial system does have its own drawbacks and inefficiencies which is the reason why middlemen come into function in the payment system. These middlemen or third-party service providers do charge for every online transaction being made. Since the stablecoins work on the base of blockchain technology which allows for payments to be made directly between buyers and sellers, so it is quite promising when used in the eCommerce domain.

Blockchain technology also helps in reducing costs for both the merchants and the consumers at the same time. This is a new form of technology that even allows for the automation of the transaction verification process. The technology is even efficient enough at reducing the infrastructural costs possessed by the banks. With these advantages, the stablecoins might help in faster settlement times and even help in initiating affordable international transactions as well.

With higher efficiency, the stablecoins could help in translating the wider customer reach for the eCommerce platforms. The product merchants would more capable of offering their products on the eCommerce platforms simply because of the lowest fees charged. Hence, the end customers of the online shopping platforms might even be able to decide on how to maintain balance with the digital currencies for completing the online transactions without even opting for the fiat currencies. However, there are higher chances that the stablecoins might get well recognized in the eCommerce ecosystem simply for the potentials it has.