Stablecoins have grown by leaps and bounds since the start of 2020. As previously reported, stablecoins are increasing their market capitalization despite negative interest rates and many see a bright future for dollar-backed stablecoins in the years to come.

After the March market crash, many crypto users have flocked to the stablecoins while   BTC   and other altcoins n ' have not kept their promises. But given the current state of the US dollar, given the fact that trust-backed stablecoins are guaranteed in a 1: 1 ratio, one can't help but worry about the future of stablecoins.

Joel Telpner, seasoned advisor, strategist and president of Fintech at Sullivan & Worcester, at a recent round table on stablecoins, commented on the future of stablecoins and also shared his thoughts on the very concept of stablecoins. He stated,

“The definition of stablecoin is not as clear. It depends on how you define it. The concept of "stability" is a relative concept. Stable at what? How stable? What stability? If you tie it to a dollar, well, if the dollar itself is not stable, will the coin be stable? It's not really a black and white concept. "

According to Telpner's opinion on stablecoins, the future of stablecoins could be very uncertain given the daily decline in the value of the US dollar. So the question arises: "If the value of stable coins changes according to the currency to which they are attached, how can we depend on them?" How can we even call it stable? and “On what basis do analysts predict a bright future for stable coins?”. These are some of the questions that the stable ecosystem must answer.

On the other hand, there is also a major difference between stable pieces that are backed and secured by assets, whether it is a traditional asset or any other type of asset. Commenting on the same thing, Carol Van Cleef, CEO of Luminous Group at the same roundtable, said:

“There are different types of stable parts. Some are guaranteed by fiat, and some by gold, silver or any other metal .. they are also guaranteed by other tangible and intangible assets. This is the main difference between the stable parts that are backed and guaranteed. "Stability" is therefore a relative concept. "

Another interesting factor to consider is the end user of stablecoins. Are stablecoins considered a store of value or are they used as a method of payment? Is it intended for retail investors or wholesale investors ?. It is indeed important to understand the concept of stability and the use cases of stable parts before discussing their future. However, given the big picture, stable coins have proven to be a bridge between crypto and traditional space, and judging by its appearance, it is safe to say that they could thrive at to come up.