Stablecoins: a challenge to traditional payments

Stablecoins (digital assets pegged to traditional currencies) are a double-edged sword. They threaten central bank control but offer opportunities for cheaper, faster global payments - potentially saving trillions. And the stablecoin market keeps expanding, itself being currently valued at over $150 billion. Tether is the biggest stablecoin and made $2.85 billion in the final quarter of 2023 for an annual profit of $6.2 billion. It holds 75,000 BTC and a chunk of gold, both of which have performed strongly in 2024, so far. Legislators grapple with how to regulate stablecoins with the Lummis-Gillibrand Act in the US aiming for a balance between stability and innovation. International standards, such as those being developed by the International Organization for Standardization (ISO) are crucial for different digital currencies to work seamlessly together. Ultimately, stablecoins have the potential to reshape the financial landscape but navigating the internal challenges of stability an…