What are Stablecoins and Why Is it Growing in Asia?

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Stablecoins are cryptocurrencies designed to minimize price volatility, it is often praised for offering the advantages of cryptocurrencies, including transparency, efficiency and low transaction fees, while overcoming the wild price swings inherent to the likes of bitcoin and ether.

Proponents say stablecoins could help blockchain and cryptocurrencies gain mainstream appeal, paving the way for adoption of blockchain and crypto-based financial products that aren’t currently practical. This includes applications in the areas of payment, and cross-border money transfers, among others.
Though the very first stablecoins emerged in 2014, it wasn’t until 2018 that the trend took off. Today, there are more than 130 stablecoin coin projects in development, according to a report by blockchain research company Blockdata.

While the most popular ones, like Coinbase’s USD Coin, Tether, Gemini Dollar and Paxos Standard, have been designed to be equal to the US Dollar; 2019 has seen a surge in stablecoins representing other world currencies, including the Euro, the Swiss Franc, the Hong Kong Dollar, and the Singapore Dollar, to name a few.

Everex, a Singapore registered fintech company with its head office in Bangkok, claims it was the second company in the world after Tether to introduce a fiat pegged stablecoin. THBEX represents the Thai baht, and is meant for individuals and small and medium-sized enterprises (SMEs) in the South Asian region looking to send money and payments to neighboring countries.

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