Stablecoins are variants of cryptocurrency that allow users to buy and pay for goods and services without having to worry about the volatility that characterize typical cryptocurrencies. These are becoming more popular recently and this is confirmed by a recent survey conducted by Omisego, a smart contract platform.
The survey involved 560 participants from 58 countries aged 18-44%, 81.6% of which said they were very familiar with stablecoins. Another 15.7% said they were familiar with stablecoins but not very knowledgeable about it and only 2.8% had no idea. Participants were interviewed on different aspects of stablecoins such as the most preferred stability mechanism for stablecoins, stablecoin features they look for and their greatest perceived risk to stablecoin holdings.
Stability indices and stablecoin features
As the name implies, stablecoins rely on some external mechanisms to be “stable”. Every stablecoin depends on one of the following: Fiat, overcollateralization, an asset, or algorithm. Most of the respondents (52.46%) said they preferred fiat-pegged stablecoins, followed by asset-pegged stablecoins which got 27.83%. 22.61% preferred overcollateralized stablecoins while 21.16% would like algorithmic stablecoins. A good percentage (26.67%) had no idea which one they preferred.
Apart from preference for stability mechanisms, respondents also indicated features they like for any stablecoin. These include Accessibility in local currency which topped the chart at 83.13%, followed by Transaction efficiency which had 72.29%. The next is number of exchanges listed on it which had 66.27% while pegged-fiat strength had 65.06%. Hedge had 32.53%, Leverage is 19.28%, derivatives 13.25% while other features is at 2.41%.