A Stablecoin Bitcoin On The Point Of Defeating The USDT?

As stablecoins become more widely used in the crypto world, one prediction is attracting attention. According to CoinShares, a stablecoin from the Bitcoin network could see the light of day this year. This would combine speed and low cost, while benefiting from the network’s unrivalled security, opening up the prospect of surpassing current leaders such as USDT and USDC.

Emergence of a stablecoin on Bitcoin in 2024 to dethrone current leaders

Currently, the majority of popular stablecoins are based on blockchains such as Ethereum and Tron. Their popularity is linked to the speed and low cost of transactions. However, according to CoinShares, the imminent emergence of a stablecoin based on the Bitcoin network could potentially surpass these well-established competitors.

The report dated Monday, January 22, from analysts at CoinShares, highlights the conviction that a stablecoin Bitcoin-related competition will be up and running within the year.

We expect 2024 to be a pivotal year for Bitcoin in the stablecoin arena.

Excerpt from the report

Several challenges remain, however, since Bitcoin was not designed to support these token natively. And historically, users have chosen other, faster and cheaper blockchains.

Some Layer 2 Bitcoin stablecoin projects already exist (Stacks, Liquid Network), but are struggling to establish themselves, notably because of their imperfect indexation to the dollar.

Lightning and Ordinals, the keys to success?

Fortunately, two major Bitcoin innovations could change all that: the Lightning Network and Ordinals.

According to CoinShares, the combination of these two technologies could lead to a stablecoin combining speed, low fees and maximum security thanks to the Bitcoin infrastructure. An unbeatable value proposition.

If realized, this stablecoin would first attract users of Bitcoin looking for stability without giving up on the queen of cryptos. Eventually, financial institutions and even central banks could be seduced by a digital currency that guarantees transaction confidentiality and resistance to censorship.

Although forward-looking, this prediction deserves attention. For in the future, such a stablecoin would mark a major turning point in the crypto ecosystem, even if we recall that the USDT was originally linked to the Bitcoin blockchain.