Our article focusing upon the inevitability and importance of stablecoin regulation given the success of fiat-backed stablecoins indirectly introduced another subject: savings in the time of inflation. How are investors already using stablecoins as a savings account?
Regulators across the world seem to approve of fiat-backed stablecoins, whether begrudgingly or not, because they hold to their pegs through the simplest of safeguards. That is, one US dollar or euro (for example) for every coin “minted” or released.
It works, virtually flawlessly, as it seeks not to eradicate the fiat structure but destroy the incumbent idea that transfering cash should cost anything more than 1 or 2 USD. Frankly, it should cost nothing.
In addition, using stablecoins as a savings account opens up the door to a much more sophisticated “crypto” portfolio arguably able to beat traditional returns, particularly during global bear markets. Fiat-backed stablecoins serve as gateways to much greater yields and capital gains.
Read more here.