The HTX Ventures report titled 'On-Chain Extension of the Dollar' analyzes the growing role of stablecoins in creating a parallel dollar-based financial infrastructure.
Problems of Traditional Financial Systems
The report highlights persistent flaws in classic transaction systems, such as high fees and prolonged settlement times, which hinder financial access especially in developing countries. In contrast, stablecoins like USDT and USDC offer real-time settlements and easy access via digital wallets.
Expansion of Stablecoin Usage
The rise in the usage of stablecoins is observed in regions such as Latin America, where USDT serves as a hedge against local currency depreciation. Similarly, in parts of Asia and Africa, stablecoins provide practical financial alternatives in countries where inflation and capital controls hinder banking system development.
Future of Stablecoins in Financial Flows
According to the report, stablecoins are evolving into 'shadow banks' on-chain, potentially undermining central banks' control over lending and monetary mass. This raises new questions about transparency and systemic risks, as well as the increasing role of stablecoins in both traditional and decentralized finance.
The HTX Ventures report emphasizes the importance of stablecoins in modern financial transactions, showcasing their potential as tools to enhance financial access and improve efficiency worldwide.
