Traders use stablecoins as an alternative to banks

More and more small asian merchants and European would turn to stable cryptocurrencies, as Tether (USDT) and USD Coin (USDC), to trade.

According to several crypto payment companies and OTC trading offices, the stablecoins gain popularity with little ones tradespeople in Europe and in Asia, reports Bloomberg.

Companies specializing in the import and export of all types of products would use crypto-currencies whose price is backed by the US dollar to settle transactions faster than through the conventional banking system as well as to bypass capital controls.

according to QCP Capital, a Singaporean crypto-startup that serves this type of client, transactions linked to commercial exchanges with stablecoins already exceed $ 10 million a day.

For B2BinPay, a Russian start-up that allows you to trade cryptocurrencies for fiat currencies, this type of transaction already represents several million dollars each month.

They use this as an alternative to banks. Crypto goes back to its roots, ”said Darius Sit, managing partner at QCP Capital.

While Bitcoin was created following the gradual loss of confidence in financial institutions, traders prefer to turn to digital assets with less volatility.

They don’t necessarily believe in the long term value of crypto, just that it will keep its value long enough to settle the transaction, ”said Aaron Brown, journalist for Bloomberg Opinion.

Although the transmitter of Tether (USDT), iFinex, was charged with market manipulation and prosecuted by the New York prosecutor for concealing funds, it is now the most traded stable coin in the world.

In some regions, such asSouth East Asia, traders would however use more regulated stablecoins, such asUSD Coin (USDC) from Circle and Coinbase.

"The stablecoins are perfectly suited to these gray market business models involving cross-jurisdictional transfers, in areas where the financial sector may not be trustworthy or simply ineffective, ”commented Nic Carter, co-founder of CoinMetrics.