#BigTechStablecoin Stablecoins: These are cryptocurrencies designed to maintain a stable value, typically pegged to a traditional asset like the U.S. dollar. This stability makes them suitable for transactions, unlike highly volatile cryptocurrencies.
Big Tech's Motivation:
Reduced Fees: Big Tech companies aim to bypass the often expensive fees charged by traditional card networks (like Visa and Mastercard) by utilizing blockchain technology and stablecoins.
Faster and Cheaper Cross-Border Payments: Stablecoins can facilitate quicker and more cost-effective international transactions.
Control over Payment Ecosystems: By using or even issuing stablecoins, these companies could gain more control over their own payment infrastructure and customer financial data.
New Revenue Streams: They could potentially earn returns on the reserves backing the stablecoins.
Current Developments:
Exploration and Talks: Many Big Tech firms are in early discussions with crypto companies and payment processors to explore stablecoin integration.