Stablecoin wallets have emerged as a safe and viable option for people to have their money in decentralized and away from the government. Forbes highlights that payment rejections, unfavorable government policies, etc. are likely to make people jump on the crypto and stablecoin bandwagon.
Stablecoin Wallet Help Keep Money Away From Banks
Forbes highlights that the World Bank Global Findex Database 2021 reports that 76% of the adult global population owns an account of some kind. However, banks act at their discretion, sometimes in a highly capricious way. Even in 2024, having a bank account does not mean that you won’t experience financial instability at some point in the future. Given this, maintaining a cryptocurrency wallet that is stocked with stablecoins—coins that are linked to the value of a currency—might be the public’s best line of protection against untrustworthy organizations.
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Unfortunately, this refusal of payment services is not limited to banks. Payment apps like Wise, CashApp, Paypal, Venmo, and CashApp function similarly to banks. However, governments and law enforcement can also impose crackdowns and force people to unbank, as was the situation with the Sparkpay platform during the 2019 protests in Hong Kong. Or the instance of the #endsars protestors who were subjected to financial penalties in Nigeria in 2020.
Rising US Debt to Boost Stablecoin Reach
The US debt is currently at an all-time high. Because of this plus the uncertainty around the Fed’s plan to lower interest rates and the devaluation of currencies, investors are now wary of traditional financial markets. As volatility has increased and financial pressure has increased, the crypto markets have so far demonstrated resiliency.
Moreover, evidence of potential short-term market volatility raises the possibility of a decline in the value of government assets. The markets for cryptocurrencies and stablecoins are probably going to rise in a scenario like this as investors move their money into the virtual currency industry.
People are more inclined to look for a decentralized solution since concerns about currency depreciation are heightened by the growing US debt. Under these circumstances, crypto has proven to be a respectable choice.
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The post Stablecoin Wallets Emerge as Options Against Financial Deplatforming appeared first on CoinGape.
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