Will Circle and Tether Soon Face Thousands of Stablecoin Competitors? Unlikely, Says Moody’s
The Senate has passed a bill to legalize stablecoin issuance in the U.S., which proponents believe will enhance blockchain payments across the economy. Predictions suggest that this could lead to a surge of new stablecoins, potentially challenging existing leaders like Tether and Circle. However, analysts at Moody’s express skepticism about widespread adoption, citing significant barriers. Creating stablecoins requires viable business models, and banks may prefer simpler solutions like tokenized deposits. Retailers considering their own stablecoins could complicate the market, leading to multiple tokens functioning as vouchers within closed systems. The lack of liquidity pools for exchanging different stablecoins could hinder their practicality, raising doubts about solving real-world payment issues. Despite interest from major players globally, the actual implementation of stablecoins remains uncertain.
