In the cryptocurrency space, there are a lot of different opinions on stablecoins. Vitalik Buterin sees some merit in these assets, although they may not find their core niche in their current state.
The stablecoins currently on the market seem to struggle quite a bit.
Stablecoins Need to Keep Evolving
Only Tether’s USDT is effectively growing by leaps and bounds.
All of its competitors, on the other hand, are not moving up all that much, as there doesn’t appear to be an increase in demand.
If Vitalik Buterin is to be believed, this may only be a temporary turn of events.
He thinks that the stablecoin segment still has potential waiting to be unlocked.
To do so, however, they will need to achieve interoperability across different blockchains.
A remarkable statement, considering how all of the major stablecoins are currently issued on the Ethereum blockchain.
Ensuring that these stablecoins work as a value-exchange across blockchains would be an interesting turn of events.
To date, very little blockchain interoperability exists, for some unknown reason. It is in every project’s benefit to ensure that cross-compatibility can be unlocked sooner rather than later.
Unfortunately, it may take quite some time until that level is achieved, if ever.