Branded Stablecoins Can Introduce Cryptocurrencies to Everyday Consumers
摘要： Technology should be easy, seamless, and able to provide value to the end consumer without changing learned behavior.
The blockchain industry stands at a crossroads where superior technology lacks real-world utility. Despite Satoshi initiating a decentralized revolution, billions of dollars flowing into cryptocurrency markets, and extensive institutional interest, actual utility remains low. The realm of blockchain more resembles a developer playground than a utopian digital economy. How do we cross the chasm of blockchain adoption?
Much of the apprehension around cryptocurrencies stems from a lack of stability. The advent of stablecoins has stimulated a surge in decentralized finance, providing easy access to capital and services, in relatable denominations such as US dollars. This is easier to engage with than the fluctuating values of cryptocurrencies, but even still, the average Joe probably doesn’t know what a Tether is. This doesn’t begin to address the hurdles people face utilizing blockchain technology.
Branded currencies, such as loyalty and rewards points, gift cards, and certificates, sit in the pockets of millions worldwide and have helped to drive consumer behaviour for 30+ years. Recently, notable brands such as Facebook and Walmart have begun to explore the emerging asset category of branded stablecoins as stable assets that can be overlayed with unique features and built directly into the user experience.
“Just wait and see, most loyalty points will be tokenized. Not a small market. #adoption” - CZ, Binance
Branded stablecoins are a second generation of stablecoins that address frictions within both the points economy and the blockchain industry. Backed by real dollars, these assets hold greater perceived value over traditional points systems. The value of five dollars is near universally understood, however, arbitrary points systems have a much harder time communicating this. As stablecoins that live within existing applications, they also have a familiarity that many cryptocurrencies have yet to develop. Additionally, they are backed by funds held in trust provided by the brand, addressing issues of fractional reserves such as those currently faced by Tether.
Leveraging existing brand ecosystems and infrastructure, branded stablecoins have the potential to instantly port millions onto blockchains, driving adoption in a seamless manner in which consumers experience minimal, if any changes to learned behaviour.
"Technology should be easy, seamless, and able to provide value to the end consumer without changing learned behavior" - Michael Luckhoo, DigitalBits
Projects such as DigitalBits, recently listed on KuCoin, aim to become the network layer for branded stablecoins and drive the next wave of crypto adoption. Branded stablecoins have the potential to go beyond simply combining stability with blockchain, and look to enhance the relationships that exist between brands, consumers, and payment providers. Big players are starting to enter the space, creating new avenues to employ the usage of cryptocurrencies within existing economies. Effectively driving the masses requires a holistic approach, one that will be led by brands and companies alike. The second generation of stablecoins may be the catalyst to this next wave of adoption.