With more of the world’s population getting into the crypto trading game, more currencies than ever before are circulating in the digital world. This has started to raise an issue when it comes to hedging against forex movements, and traders are constantly looking for new stablecoins to help secure their portfolio.
For the longest time, only USD stablecoins were available, but slowly more and more currencies are getting a digital sister currency that can be used on crypto exchanges all around the world. Now, it appears that the Hong Kong Dollar (HKD) is getting its own stablecoin thanks to Bitspark.
Stablecoins Are Vital for Traders
Stablecoins are incredibly important to crypto traders, as they provide the ability to remove crypto exposure without cashing out from the crypto world. Traders simply swap their crypto into a stablecoin the same way they would trade any crypto pair. The main difference being that there are significantly less fees involved when using a stablecoin compared to cashing out to a fiat.
Without a stablecoin denominated in the trader’s native fiat, they are exposed to forex movements that can offset any potential gains made in the crypto markets, making new stablecoins like the HKD stablecoin vital to the future of crypto trading.
Circle CEO’s Prediction Holding True
We have seen some outrageous predictions since crypto caught fire back in 2017, and while many scoffed at Jeremy Allaire’s claims, it looks like he could be right. Back in June 2018, Allaire – Circle CEO – said that every fiat currency will have its own stablecoin in the very near future. With every passing week, a new stablecoin appears to be created, helping Allaire’s prediction inch closer to becoming a reality.
Yen Stablecoin Now Live
Japan has some of the highest taxes on crypto activity, so it’s no wonder the government has given the green light for CryptoGarage to test out a Yen stablecoin. The new Yen stablecoin will launch on a variety of Japanese crypto exchanges and will use atomic swaps to allow traders to interact with the stablecoin.
Could Stablecoins Replace Fiat Currencies?
Texas is currently exploring the option of allowing USD stablecoins to be used as a payment method. The lone star state is contemplating creating a new bill that would make the use of stablecoins as a payment method in stores completely legal. This could pave the way for a digital currency takeover in the state, eventually spreading to top cryptos. Whether it will pass the bill or not is yet to be seen, but it would be a huge move for Texas.
Crypto traders from Hong Kong can now access the HKD stablecoin on various local exchanges, making trading life much simpler. Long gone are the days where traders from Hong Kong had to hedge crypto risk using a USD stablecoin and expose themselves to increased volatility.