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Could Stablecoins Drive the Widespread Adoption of Cryptocurrencies?




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There’s been a lot of buzz about stablecoins recently. Regulators, in particular, have shown a lot of interest in them. Pundits are optimistic about this form of cryptocurrency. Could stablecoins drive the widespread adoption of cryptocurrencies? In this post, we’ll attempt to answer that question.


What are Stablecoins?

Stablecoins are also a cryptocurrency. Unlike traditional cryptos like Bitcoin, their value is asset-based. A standard cryptocurrency is very volatile. Market sentiment can make the value soar or plummet because traditional cryptos are purely market-driven.

Stablecoins, on the other hand, are backed by actual assets. They operate more like a normal fiat currency as a result.


Why Are Stablecoins Getting so Much Attention?

Pundits believe that stablecoins have a more stable value. This could lead to them being more widely accepted by vendors. At present, Bitcoin is the most commonly used currency for payments. You can use Bitcoin with vendors like Microsoft, Big Fish Games, and NameCheap.

Smaller vendors, however, might not have the cash reserves to bet on Bitcoin. The Bitcoin value is simply too volatile. Stablecoins might provide a viable alternative. At the moment, Tether is the most popular stablecoin.

Tether attempts to match the dollar exactly in terms of value. The idea is that you can buy one Tether for one Dollar.


Will Stablecoins Replace Bitcoin and Other Cryptos?

It’s too early to say. Stablecoins offer a significant benefit over traditional cryptos. You get the benefits of your traditional cryptos but without the market volatility. It’s an interesting concept and might be seen as an improvement on the traditional model that we’re working with.

More stability could drive greater market acceptance. This could lead to the traditional cryptos being viewed purely as a speculative investment. With viable alternatives, it’s hard to imagine that traditional cryptos will survive in their present format.


What are the Potential Issues?

That said, there’s more than just market sentiment to consider here. Stablecoins will act more like fiat currencies. Their strength is determined by the value of the underlying assets. If these assets lose value, so will the currency.

We saw as much with Tether. Between 2015 and 2017, it kept a steady value of around a dollar. Problems that Tether had with their bankers saw the currency drop to $0.92. That’s not a huge difference, but it shows that its values can also fluctuate.

Tether has had other problems since. They don’t allow independent auditors to assess their assets. This has proved problematic for them because it’s shaken market confidence. Are there really sufficient assets to back the currency? What liabilities does the company have?

These are issues that affect several stablecoins. As a result, the future of these coins is not as clear as we’d like. As adoption increases, the coins will face similar risks as your traditional banking organizations.

If everyone decides to sell their coins at once, it’s the same as a run on a bank. The company won’t have sufficient assets to cover all the withdrawals. The same is true of large withdrawals.

It seems that there are still some issues to be worked out. Stablecoins may well be subject to market manipulation. In 2017, we saw the effects of a sudden loss of confidence in Bitcoin. Experts now believe that this was due to serious market manipulation.

If we look at traditional currencies, we see something similar. Despite being asset-based, there is always the possibility of market manipulation sending a fiat currency into a downward spiral.


Final Notes

There is no clear-cut conclusion to be drawn here. Stablecoins look promising, but there are still issues that need to be addressed.


Cryptocurrency Market Report 2020: Technology, Applications and Implementation for Financial Services




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TCS Positioned as a Leader in Capital Markets Operations by Everest Group

Vlad Poptamas




Tata Consultancy Services (TCS) (BSE: 532540, NSE: TCS), a leading global IT services, consulting and business solutions organization, has been recognized as a Leader in the Everest Group PEAK Matrix™ for Capital Markets Operations1.

In an assessment of 24 global service providers offering capital markets operations services, TCS was placed highest for Vision and Capability, as well as Market Impact. Additionally, it was named a Star Performer for having top quartile year-on-year improvement in its scores.

TCS’ strong position in the overall capital markets segment is attributed to consistent growth in its portfolio with multiple new wins. According to the report, the company has continuously worked on creating solutions backed with the latest technology to help its customers solve operational problems more efficiently. It mentions TCS BaNCS™ Cloud for Asset Servicing that automates the servicing of multiple asset classes across custodians, brokerages, asset managers, and investment banks. The report also highlighted a successful POC where TCS powered the world’s first cross-border securities settlement between two central depositories using Quartz™ Blockchain.

With growing competition in the capital markets segment, customer preference for digital channels, and increasingly complex regulations, financial institutions are banking on innovative use of technology to stay ahead,” said K Krithivasan, Business Group Head, Banking, Financial Services and Insurance, TCS“This recognition from an independent third-party research firm is a testament to our vision, capabilities, services offered, and market impact.”

TCS offers a comprehensive portfolio of services in the capital markets domain. Its customers include over 85 buy and sell side firms as well as market infrastructure firms and custodians. TCS’ in-depth domain solutions cover all functions and include:

  • Front Office: Research and analytics, channel management support, para planning for wealth management customers
  • Middle Office: Post trade processes including trade affirmation / confirmation, pricing and valuation, portfolio accounting and reconciliations
  • Back Office: Settlements, reconciliation and fails management accounting including fund accounting, fund administration, and transfer agency

Guided by its Business 4.0TM thought leadership framework and the Machine First™ Delivery Model (MFDM™), TCS has made steady investments and developed frameworks, point solutions and showcases. These include the wealth and retirement platform on TCS BaNCS, a wealth advisory solution, robo advisor and event fusion solution, conversational agents powered TCS’ proprietary tool Conversa™, interactive customer reporting, X code, and distributed ledger technologies for corporate actions, among other blockchain, robotic process automation, platform modernization-based frameworks.

In an environment shaped by changing user preferences and pressure from fintechs, it has become critical for financial institutions to connect their front- and back-office functions seamlessly,” said Manu Agarwal, Practice Director, BFS Business Process Services, Everest Group. “Supported by strong operational expertise and digital offerings, TCS enables its customers to deliver this superior experience.”

Our rich experience in capital market services, regulatory knowledge, innovative offerings backed by the latest digital technologies, and deep contextual knowledge places us in a strong position to deliver exponential value to our capital markets customers,” added Krithivasan. 


SOURCE Tata Consultancy Services

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Huobi Token (HT) Reaches New High Amid Increased Adoption and Ongoing Ecosystem Development

Vlad Poptamas




Huobi Global today announced that Huobi Token (HT) has reached a new 12-month high amid the continued growth and development of the whole ecosystem. As of yesterday, HT was trading at a token price of $5.27 USD, a 92% increase since the close of 2019 – and nearly a 5X increase compared to this time last year.

As the native token of digital asset exchange Huobi Global, HT’s new milestone underscores the recent progress of Huobi’s global ecosystem. Last month, Huobi Global and Huobi DM experienced a strong start to 2020 with a 65% month-over-month spike in aggregate trading volume.

Huobi has also transitioned from quarterly to monthly token burns, which are based on a percentage of Huobi Global and Huobi DM’s revenues for each corresponding period. For Huobi’s first monthly burn, 4.057 million HT were repurchased and destroyed in January, which has a current market value of $21.4 million USD. A total of 45.838 million tokens have been burned to date.

“2020 is a pivotal year for Huobi as we enter new global markets and continue expanding our product line-up for both institutional and retail audiences,” said Ciara Sun, Vice President of Global Business at Huobi Group. “HT is a foundational part of the Huobi ecosystem, so we are deeply committed to its success.”

HT Product Roadmap

As part of a longer-term strategic roadmap for HT, Huobi has a number of upcoming initiatives planned that aims to further increase the token’s utility for the broader blockchain and crypto community.

Huobi DM’s new Perpetual Contract product, which is currently undergoing internal testing and nearing public launch, will be incorporated into the HT Token Burn Program. HT will also play an integral role in the ecosystem of Huobi Chain, a regulator-friendly financial blockchain that’s slated for testnet launch in the near future.

Additional features in development include HT margin trading with up to 2X leverage, which is expected to launch in March, and collateralized HT for peer-to-peer crypto lending and pledged loan contract assets.

HT Ecosystem Adoption

To further expand HT’s utility beyond the Huobi ecosystem, Huobi is accelerating efforts to integrate with third-party partners, including international credit cards, digital bank cards, blue-chip technology companies, and global entrepreneurship centers.

HT was recently accepted as a payment option for charitable donations to Project HOPE, a global nonprofit organization that has been providing health development and emergency relief since 1958. Last month, Huobi partnered with a leading crypto-friendly hotel booking platform to integrate HT as a preferred payment method on


SOURCE Huobi Group

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