“Introducing the stablecoin to Cardano would be a really good thriving factor for the Cardano DeFi ecosystem. And also, there's a way in which the native assets on Cardano are structured that makes it really good for a global payments or remittance analogue” - said the Managing Director of EMURGO, the commercial and founding entity of Cardano Vineeth Bhuvanagiri.

He added that the forthcoming USDA stablecoin is expected to boost the Decentralized Finance (DeFi) sector of the blockchain platform.

Bhuvanagiri recently talked about the benefits of stablecoins and the regulation of centralized exchanges in a discussion. He also discussed the current state and future direction of the industry and gave some tips for exchange users to protect their funds.

Cardano's upcoming stablecoin, USDA, which is backed by USD, is set to be released in early 2023. The stablecoin is anticipated to provide benefits to Cardano's decentralized applications in the Web3 ecosystem, and it will be the first product from EMURGO's fintech suite named 'Anzens', according to a blog post.

As Bhuvanagiri revealed to Cryptonews.com, there are not many stablecoins on Cardano compared to Ethereum. This poses a problem since Cardano's decentralized finance (DeFi) ecosystem is expanding, and the community must have the means to reduce its risk.

Cardano intends to begin its tokenization journey with US dollars and then move on to tokenizing a range of real-world assets, based on its current plan. The technology behind USDA is intended to digitize and tokenize assets with the assistance of reputable financial institutions, allowing for seamless trading in the DeFi ecosystem. If a user wants to redeem their tokens, they can do so by returning them to EMURGO, which will unlock the underlying asset and provide physical delivery if necessary.

In addition to tokenizing fiat currencies, the Cardano team intends to do the same with precious metals and new or emerging assets that are not yet fully regulated, as per Bhuvanagiri's statement. Carbon credits are another rapidly expanding market to watch, as blockchain's inherent traceability could offer more advantages and provide a decentralized means for people to trade and exchange carbon credits.

What should we expect?

As per the specialist, stablecoins have a promising future. He commented that the stablecoins will continue to expand, as they are one of the primary use cases within the cryptocurrency ecosystem.

An instance of this is that although traditional banking methods are still mostly used for remittances, stablecoins present a simple way to revolutionize the existing remittance industry.

Moreover, stablecoin creators are focusing on producing greater returns in response to high inflation rates and the decline of interest rates on US Treasuries. This approach would encourage more people to invest in stablecoins, as they could obtain significantly higher yields than by simply depositing their funds in a conventional financial institution's savings account.

According to Bhuvanagiri, as central bank digital currencies (CBDCs) gain popularity, they are expected to work alongside stablecoins rather than replace them. However, it is unlikely that government-issued digital currencies will have the same range of features as stablecoins.

Bhuvanagiri revealed that their priority for the current year is to streamline the process of using cryptocurrency for small transactions.

Bhuvanagiri stated that the objective is to provide users with the ability to transfer their cryptocurrency from their anonymous account to a regulated account in a swift and straightforward manner. Afterwards, they can borrow funds to pay off a prepaid credit card that is already a feature of the wallet.

To provide an example, a person can use their ADA to purchase coffee by transferring the coins to their regulated account, then utilize the card to make the payment, and subsequently, transfer the funds back to their anonymous wallet.

Summary

In Cardano, they say that with the launch of their new stablecoin, they are revolutionizing everyday life and bringing even more people closer to the crypto world.

According to them, this news is not only good for ADA users and Stablecoin backers but also positive for the industry as a whole.

A.I. Tokens for future investors