According to recent announcements, a London-based cryptocurrency platform, Wirex, has teamed up with the crypto project Stellar (XLM) in order to launch up to 26 new stablecoins on its network. The stablecoins will be pegged to various fiat currencies, which will allow them to secure their price and never go beyond or below a certain value.
The rise of stablecoins
Stablecoins’ popularity continues to grow in the crypto space, and many coin holders around the world have started using them due to last year’s bear market. With ties to other assets, such as traditional currencies, gold, or even other cryptos — stablecoins are capable of maintaining their value and avoiding the volatility that troubles the regular digital currencies.
With the growth of popularity, the number of stablecoins grew as well, but also their activity in the crypto space. Recently, a somewhat controversial stablecoin — Tether (USDT) — even made steps towards migrating a portion of its coins to TRON blockchain. As such, TRON-USDT will become faster and cheaper to use.
Now, Wirex and Sellar partnership shows that the stablecoin trend is not going away. Instead, as many as 26 new coins are about to arrive at the market.
Dollar-backed stablecoins do not work for everyone
As mentioned, stablecoins became very popular during the crypto winter of 2018, when prices of pretty much every other cryptocurrency dropped significantly. Prior to this period, stablecoins were seen as shady, and not a lot of people was willing to use them. However, they managed to prove their usefulness in this highly-volatile industry, and they now hold the potential to change not only the crypto industry — but the entire world as well.
However, according to Pavel Matveev, a co-founder of Wirex, there is one big issue with stablecoins, and that is the fact that the majority of them are tied to the US dollar. As such, they are great for trading within various exchanges. But, they are not so convenient when it comes to trans-border payments, as they are not scalable, and they do not support fiat currencies of other countries.
Stellar’s network is the perfect solution
This is where Stellar comes in, as it is a project that focuses on solving the very issue of making international payments. Traditional technologies used for making cross-border payments are slow, and they often take days to complete a transaction. So, the crypto space developed its own solutions.
One of them is XRP, but this coin chose to offer its technology to the banks. Alternatively, Stellar (XLM) does the exact same thing — within seconds — with its focus being on regular people. Considering how Wirex itself focuses on payments (local and international), it only makes sense for the two to enter a partnership in order to launch stablecoins.
Matveev stated that Wirex’s goal is to bank the unbanked and democratize access to financial services for those who could not reach them. There are billions of people who are either underbanked or completely unbanked. That means that there are billions of people who can contribute and benefit from the global economy, but unfortunately, their circumstances are keeping them away.
Stellar, Wirex and their soon-to-arrive stablecoins can change that. Meanwhile, XLM was added to the list of cryptocurrencies that Wirex works with, and so will be the new stablecoins. Further, Matveev claims that Stellar’s and Wirex’s stablecoins will even be accepted via Visa cards by over 2 million retailers, as well as 5,000 corporate customers in over 130 countries.
You can now buy, store, exchange and spend Stellar Lumens (XLM) on the Wirex platform, making it the 5th @CoinMarketCap Top 10 currency to join Wirex, bringing our digital token offering to nine overall 🌟 @StellarOrg #BTC #LTC #XRP #ETH #WAVES #WLO #DAI #NANO #XLM pic.twitter.com/9tC4DyOwv6
— Wirex (@wirexapp) April 25, 2019
This partnership represents yet another effort by the crypto space to solve real-world problems that traditional financial industry was unable to solve.