Will stablecoins be the next big thing?

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Luzius Meisser, a board member of Switzerland’s Bitcoin Association believes that stablecoins and security tokens will be the focus of the next big crypto wave. This statement emerged during an interview with a Cointelegraph journalist at the Crypto Finance Conference in St. Moritz, Switzerland on 16th January.

Meisser is a computer scientist and economist, as well as being very active in Switzerland’s crypto industry, also said that he believed in the medium-term future for crypto we would see ICOs going through some significant changes. He believes that investors will have more protections and predicted that security tokens can be expected to account for the next, much more heavily regulated wave of the ICO market.

He is putting his faith in stablecoins as well, because their decentralised mechanisms ensure they are legally considered to be payment or utility tokens rather than securities and thinks they could be an important pillar of the blockchain sector: “Stablecoins are a precondition to enable average companies to bring their equity onto the blockchain, because if they issue bonds or shares they want to do so against U.S. dollars, euros or Swiss francs, because those are the currencies they calculate in, not Bitcoin or Ethereum.”

Meisser also commented on the fact that Swiss banks remain very risk averse and are still nervous about cryptocurrencies. He also said that there were several mechanisms available to local enterprises and startups that wish to circumvent problems with Swiss banks, one being the Swiss startup that got funding in autumn 2018 to set up a bank offering cryptocurrency-related services.

The Winklevoss twins share Meisser’s outlook; they have recently said they believe stablecoins and tokenized securities are an important development for the digital currency space, and of course, they did launch the Gemini dollar, a stablecoin that is dollar-backed and compatible with ERC 20.

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