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How can stablecoins help traders and companies in dire situations?

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The vast majority of people that embrace cryptocurrencies, whether they are spenders, traders or crypto-friendly businesses, still have to heavily rely on banks to carry out day-to-day operations. 

But what can be done if a bank decides to seize your activities solely because you involve cryptocurrencies in your daily life?

stablecoins benefits

The reality is that every region and every country has its own rules and understanding about cryptocurrencies. On top of that, all banks perceive blockchain-enabled technologies in a different light. 

If that’s not enough, the ever-changing regulatory policies (or lack of them) across the globe doesn’t make it easier to deal with industry’s challenges (however, we’re making excellent progress here in Europe).  

Depending on these and many other circumstances, sometimes people get into disputes with their banking providers about whether digital assets are legit enough to be entangled with traditional banking operations. 

Unfortunately, in rarer cases, these situations can lead to unpleasant consequences, such as a needlessly frozen bank account.

Of course, it’s not the only case scenario of how a bank can suddenly put a personal or even business account into peculiar limbo. But whatever the reasons might be and whatever inconveniences they might cause, here we’ll focus on solving two pressing problems

how to proceed with those cryptocurrencies that you wanted to turn into fiat and place into that now-frozen bank account; and, more importantly, how NOT to lose money due to price volatility of cryptocurrencies in the meantime. 

The untapped potential of fiat-pegged stablecoins

We’ve talked about various types of stablecoins on our blog before. If you’re not familiar with the term, we recommend taking a few minutes to get a grasp of it.

To shortly summarize, stablecoin is precisely what the term implies – a crypto-asset built to maintain a stable value. And yet, it retains all the properties that make cryptocurrencies tick as they do, such as strong security, high transparency, low-cost, and fast transaction.

Right now, these non-volatile digital currencies, especially those pegged to fiat currencies like Euros or US Dollars, are indeed being taken for granted, given the opportunities and flexibility they can provide. 

So, let’s create a fictive problem and imagine any crypto-friendly merchant who, for whatever reason, suddenly lost his banking privileges and cannot exchange part of his crypto earnings to fiat. The unpleasant situation staggers his business, which also becomes vulnerable to probable crypto price fluctuations. 

What role can stablecoins play here? If to take it one step further – what other good qualities do stablecoins (fiat-pegged or not) have to offer?

Here are some ways stablecoins can help the businesses take their payments’ infrastructure to the next level, as well as benefit traders: 

Naturally, such privileges do not come without a ruleset, so keep in mind that using regulated fiat-pegged stablecoins also requires you to pass the verification process (that is if you wish to get access to the fiat bridge). 

Currently, the most popular choices for fiat-backed stablecoins in the market are TrueUSD (TUSD), Tether (USDT) and Paxos Standard (PAX).

Does CoinGate provide stablecoin-related services?

CoinGate users do have an opportunity to include stablecoins in their financing habits. 

Currently, we offer two ways of how you can take advantage of them. However, during the year 2020, when we will introduce account balances, we also will vastly expand in terms of what more we can offer to our customers regarding stablecoins

Here’s what we can do right now:

In case you have a verified business account and wish to adjust your stablecoins’ settlement options, jump straight to this article for further guidance. 

Hopefully, our customers will never have issues discussed in this article. But, in case something goes south, it is always good to know a few alternatives you can use right away, and stablecoins are undoubtedly a way to go. Keep that in mind!

Do you think stablecoins could help your business achieve more in the long term? Let us know right here on Twitter!

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