The adoption of stable coins brings considerable benefits to customers as well as society by improving the efficiency in payment methods, increasing competition among banks and other financial institutions. Essentially a new innovative payment method not yet fully explored. Beside benefits, there are multiple risks that are interlinked with stable coins including: competition standards within financial institutions, financial instability and monetary policy effectiveness.
Stable Coins
Stable coins are the type of cryptocurrencies that derive its value from underlying external assets like Fiat USD. Hence, stable coins are the medium of value preferred by the crypto community. The basic factor behind their preferences is that it doesn’t fluctuate, and much like their name, it offers stable currency.
How to Earn Interest on Stable Coins?
Stable coins offer higher interest compared to traditional banks. Let us take an example over here i.e., You want to convert $2000 to Stable coins and leave with a company. The quantity will be accumulated to $2,200 by assuming 10% interest. The interest rate of stable coins depends on the company, in which you invest your designated amount. Hence, the use of stable coins depends on the type of investors; however it offers a secure risk.
