[source](https://pixabay.com/illustrations/crypto-bitcoin-money-electronic-3569795/)
Well it's safe to assume we all know what stablecoin coin is, but if I were to explain before breaking down it's uses, it's actually a special type of cryptocurrencies that is created to retain a stable value at all times inrespective of the market volatility this is largely due to the fact that they are pegged to an underlying value of an asset which is mostly the us dollar hence it has the ability to maintain stability at all times like the dollar.
Now on the uses I will break them down below:
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Uses of stablecoin |
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When was talk of the uses of stablecoin one thing that must be considered first or that is a mainstay is the fact that though pegged to an underlying value of a traditional currency, it is a digital asset built on blockchain technogy so yes stablecoin is often used to facilitate digital payment and since they are very stable like traditional currency they can be used for making everyday transactions, so this is one of the uses of stablecoin they fact it used to facilitate payment online.
Stablecoin also help to act as a hedge, in what way? Cryptocurrencies is a volatile asset as such it makes people often stay away from it due to the investment instability in it, it has become a rather risky venture though there is a potential for massive gains but it's also possible to lose much money from investment into it hence that's where stablecoin plays a good role as it helps to act as a hedge for an extremely volatile market, so when the volatility in cryptocurrencies becomes too extreme we can use stablecoin to hedge against the value of our funds, so yes stablecoin has become a useful hedge against the volatility of the cryptocurrencies market.
Also stablecoin apart from facilitating digital payment and acting as a hedge it's role it's also visible in the area of trading, most people who trade cryptocurrencies digital asset online do so knowing that when they make profit they could store their money in stablecoin, infact some use stablecoin in trading without owning the underlying cryptocurrencies asset they are trading in what we call futures trading.
So yes stablecoin has made it easier for traders to trade without the risk if owning the risky volatile asset and also for those who trade the underlying asset they can easily convert into stablecoin anytime to ensure stability of their asset hence stablecoin has become a wonderful way from both investors and traders to remain safe when the crypto market enters an extreme volatile phase.
[source](https://pixabay.com/photos/bitcoin-coin-money-electronic-money-2665932/)
Stablecoin has also become a perfect way to ensure the seamless transaction involving cross border as it offers international transactions at a much lower fees due to the elimination of intermidiaries and this has become a very useful benefits of stablecoin
Apart from the other great uses of stablecoin it has also helped to provide financial inclusion to everyone especially those in areas where they won't easily gain access to financial services, stablecoin helps everyone to be involved and help the unbanked population thus helping to provide a measure of economic empowerment which is of great use.
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Indeed the importance of stablecoin is clear in this space, as it helps to make alot of things possible here which is undeniable and of great importance especially in the area of stability which is currently lacking in the cryptocurrencies market and in this regard stable coin greatly complement this.
