#BigTechStablecoin Big Tech companies (such as Google, Meta -formerly Facebook-, Amazon, Apple, etc.) have shown interest in stablecoins, which are a type of cryptocurrency designed to maintain a stable value, generally linked to a fiat currency like the US dollar, or to other commodities like gold.
Here is a summary of the interest and involvement of Big Tech in the world of stablecoins:
What are Stablecoins?
* Stability: Unlike volatile cryptocurrencies like Bitcoin or Ethereum, stablecoins aim to minimize price fluctuations.
* Backing: Their value remains stable as they are backed by reserve assets (such as fiat money in bank accounts, other cryptocurrencies, or commodities). For example, for every USDT or USDC issued, it is supposed that there is one US dollar in reserve.
* Advantages of Blockchain: They combine the stability of traditional assets with the benefits of blockchain technology, such as speed in transactions, low costs, and the ability to program smart contracts.
Interest of Big Tech in Stablecoins:
Big Tech has seen the potential of stablecoins for various uses and to expand their presence in the financial sector:
* Payments and Remittances: Stablecoins can offer a more efficient and cost-effective way to make payments and send remittances globally, eliminating intermediaries and reducing fees and transaction times. This is especially attractive for workers abroad or companies with international operations.
* Liquidity Management: They facilitate the management of funds between subsidiaries and regions for companies, eliminating delays and ensuring liquidity where and when it is needed.
* Payroll: They simplify payroll payments for globally distributed teams, removing the uncertainty of exchange rates and reducing fees.
