Stablecoins and DeFi contribute to eliminating economic friction, increasing profit margins, and promoting global monetary circulation.
The adoption of stablecoins along with DeFi solutions is expected to significantly reduce credit costs, thereby unlocking economic value in the trillions of USD each year.
MAIN CONTENT
Stablecoins help reduce economic friction, increasing profit margins for retailers.
DeFi significantly reduces credit costs, according to data and research from the IMF.
The scale of unlocked global economic value reaches 1 trillion USD per year.
How do stablecoins affect the economy and trade?
Stablecoins will eliminate trillions of USD in economic friction, helping retailers increase net profit margins and promoting the transfer of new economic value.
This is noted by Jamie Coutts, a cryptocurrency analyst at Real Vision, based on the impact of stablecoins in optimizing payments and reducing transaction costs. Accelerating the turnover of currency also helps improve the efficiency of the economic cycle in many sectors.
Stablecoins provide price stability in payments, avoiding the volatility characteristic of cryptocurrencies, thereby increasing reliability for trading participants and promoting widespread acceptance in businesses and trade.
How does DeFi reduce credit costs and what is the impact?
DeFi significantly contributes to reducing credit costs, enhancing access to capital for businesses and individuals.
According to internal data from the International Monetary Fund (IMF), blockchain service providers in the United States have issued fixed mortgage credit lines with interest rates more than 100 basis points lower than traditional credit, currently amounting to about 11 billion USD in loans.
"The reduction in credit costs thanks to DeFi can enhance liquidity and financial health for millions of users worldwide."
Jamie Coutts, Cryptocurrency Analyst, Real Vision, August 2023
This proves that DeFi not only changes the way credit is granted but also expands economic opportunities, helping lower barriers to capital access at more reasonable costs, thereby contributing to the overall improvement of the financial ecosystem.
What is the scale of economic value unlocked by stablecoins and DeFi?
Jamie Coutts estimates the potential economic value unlocked from stablecoins and DeFi to be about 1 trillion USD per year globally.
This figure is based on the increasing adoption trend of DeFi solutions and the economic efficiency they bring, including cost reduction, optimizing capital turnover, and expanding credit provision.
Support from major financial institutions like the IMF also confirms that this trend will continue to grow, contributing to the restructuring of traditional economic models and enhancing global financial performance.
Frequently Asked Questions
What are stablecoins and why are they important?
Stablecoins are cryptocurrencies with stable values, helping to reduce volatility in transactions and payments, increasing economic efficiency and trust for merchants.
How does DeFi help reduce credit costs?
DeFi uses blockchain to eliminate intermediaries, lower interest rates and borrowing costs, making capital access easier at lower costs.
What is the scale of economic value unlocked from stablecoins and DeFi?
Estimated at about 1 trillion USD per year, according to analysis from cryptocurrency experts and IMF data.
What role does the IMF play in this trend?
The IMF provides supporting data and analysis showing that DeFi and stablecoins help reduce credit costs and increase global economic efficiency.
Real-world examples of reduced credit interest rates from DeFi?
In the United States, blockchain lenders offer mortgages at interest rates more than 100 basis points lower than traditional credit channels.
Source: https://tintucbitcoin.com/stablecoin-va-defi-giai-phong-1-nghin-ty/
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