Stablecoins have become increasingly popular in the crypto world. But this popularity also brought a whole bunch of popular myths, misunderstandings, and downright falsehoods.
Let’s break down 5 of the biggest stablecoin myths and understand the reality behind them.
❌MYTH #1: Stablecoins are the same as fiat money.
✅REALITY: First, not all stablecoins are backed by fiat.
Even fiat-backed stablecoins like TUSD have crucial differences from fiat money: lower fees, faster transfers, accessibility to people who can’t open a bank account in that currency, e.g., USD.
❌MYTH #2: Stablecoins are just for holding.
✅REALITY: Being a stable store of value is only one of stablecoins’ many use cases.
Stablecoins can also be used for daily transactions, remittances, DeFi lending and trading protocols, etc. More real-world applications are emerging as well!
❌MYTH #3: Stablecoins = safe.
✅REALITY: All assets carry risk. Even within stablecoins, security levels vary.
Look at the stablecoin’s collateralization mechanism, the transparency of its reserves, the frequency of audits (if any!), the credibility of its issuer…These can vary greatly.
Among all stablecoins, fiat-backed ones like TUSD are generally considered to have less volatility and a more stable value.
Remember, DYOR & NFA.
❌MYTH #4: Using stablecoins is complicated.
✅REALITY: The technology behind stablecoins can be complex, but using them can be straightforward. Many platforms/wallets make it easy to buy, sell, and use stablecoins.
Stablecoins can often be a gateway to digital finance for people new to it. In fact, TUSD’s mission is to make finance open and accessible to all.
❌MYTH #5: Stablecoins are just a passing crypto trend.
✅REALITY: Stablecoins have proven they have real utility and applicability, and aren’t just a fad.
There has been consistent increase in user adoption, Web2 & TradFi companies entering the stablecoin space, and increased regulatory focus.
The signs are clear: stablecoins are here to stay. TUSD, for one, is in this for the long run.
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There’s too much misinformation about #stablecoins. What other #stablecoin myths have you heard? Comment below and let’s bust them together😎 #StablecoinMythbusting
About TrueUSD
TrueUSD (TUSD) is the first USD pegged stablecoin with live on-chain attestations by independent third-party institutions. It has been listed on 100+ trading platforms such as Binance and Huobi, and is live on 10+ mainstream public chains including Ethereum, TRON, Avalanche, BNB Chain, Fantom, and Polygon. TUSD is attested daily by MooreHK，a global leading accounting firm, and integrated with Chainlink’s industry leading Proof of Reserve to secure minting and further ensure transparency and reliability. TUSD was granted statutory status as authorized digital currency and medium of exchange in the Commonwealth of Dominica on October 7th 2022.
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