Stablecoins are a type of cryptocurrency that is pegged to a specific asset or commodity to maintain stable value, theoretically usable for everyday payments, with some advantages and challenges as follows:

Advantages

• Stability: Compared to other cryptocurrencies like Bitcoin, stablecoins have a relatively stable value with less volatility, allowing users to more accurately measure the value of goods and services in everyday payments.

• Speed: Payments made with stablecoins can usually be completed quickly, without the long wait times associated with traditional bank transfers, improving payment efficiency.

• Global Reach: Stablecoins are based on blockchain technology and are not restricted by geography, enabling fast and convenient payments globally, facilitating consumption in scenarios such as cross-border shopping and travel.

Challenges

• Acceptance: Currently, the acceptance of stablecoins in everyday payments is still relatively low, with only a limited number of merchants and platforms willing to accept stablecoins as a payment method.

• Regulation: Regulatory policies regarding stablecoins are still unclear in various countries, posing certain legal risks. This may affect the widespread use of stablecoins in everyday payments.

• Security: Although blockchain technology itself has a certain level of security, wallets and trading platforms related to stablecoins may still have security vulnerabilities, leading to risks such as user asset theft.

Currently, the application of stablecoins in everyday payments is not widespread enough, but with technological advancements and improved regulations, their use in daily transactions may increase.