Stablecoins Poised to Fulfill Crypto Expectations, Says Pantera Capital Executive

According to Blockworks, Bitcoin and Ethereum have not met the original expectations many had for crypto, but stablecoins are poised to do so, says Jeff Lewis, a product manager at Pantera Capital. In a recent letter, Lewis highlighted that Bitcoin's lack of speed and scalability hinders its potential as a viable replacement for money. Ethereum, while paving the way for NFTs, Web3 applications, and DeFi powered by ether [ETH], is almost as volatile as Bitcoin, making it unsuitable as a stable currency.Stablecoins, however, are set to enable peer-to-peer transfers of value and help people protect against unstable currencies without relying on service providers. Lewis compares payments giant PayPal to a stablecoin, as it allows users to cheaply transfer digital ledger entries worth one dollar to merchants and peers worldwide. He also mentions the possibility of a trustless, transparent, and yield-bearing 'PayPal 2.0,' although PayPal has not announced any such plans.The growth of stablecoins with yields generated by underlying money-market investments and the tokenization of the money-market itself are already being witnessed. For example, Franklin Templeton launched a money market fund that uses a public blockchain to record transactions, with one share of the fund represented by one BENJI token, acting like a stablecoin with yield. Additionally, JPMorgan has built blockchain-based applications, and Citi's new Citi Token Services aims to let clients access tokenized deposits, cross-border payments, and automated trade finance solutions 24 hours a day.