30s Summary

Reeve Collins, founder of WeFi, predicts a surge in new stablecoins due to technological advancements like AI bots and streamlined account features. These improvements will simplify the management of decentralized finance, allowing users to reap higher returns without complex trading. As the user experience simplifies, Collins expects an increase in demand for return-yielding assets like synthetic dollars and algorithmic stablecoins. However, the evolution of stablecoins is also subject to regulatory considerations, as these digital assets can potentially disrupt the existing financial framework.

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The founder of WeFi, Reeve Collins, has suggested that new stablecoins are likely to hit the market thanks to technological improvements. The development of AI bots and streamlined account features will make the process of managing decentralized finance actions simpler for users. They won’t have to get deeply involved in complicated trading tactics to increase returns anymore.

Speaking to Cointelegraph, Collins explained that an increased demand for assets that yield returns such as synthetic dollars, algorithmic stablecoins, and newer real-world assets is likely as the user experience simplifies. This will consequently lead to a range of products in the ecosystem.

Reaping returns on investments will be more attainable once the hard tech hurdles are overcome. Such yield-generating instruments will then vie for investor interest due to their ease of usage. When the system’s app matures a bit more and AI is more integrated, all complexities will be eliminated. The driving factor for which token to use will then boil down to which one brings the most money and which one is easiest to use, explained Collins.

Current stablecoins, which are basically backed by fiat currency (or comparable short-term cash assets), offer no return and hold characteristics of the underlying reserves they are backed by. However, with improved stability in the industry, these may increasingly come into the limelight.

Regulations are also a critical factor in cryptocurrency. Although the case has been made for certain ultra-secured stablecoins to expand US dollar hegemony, government authorities see this new asset class as a potential risk to the present financial framework. This concern was laid out in a recent report by the United States Financial Services Oversight Council (FSOC) on Dec. 6.

Coinbase, a major cryptocurrency platform, recently delisted Tether’s USDt stablecoin in Europe in line with the EU’s crypto-assets regulations. Even though they have removed it for now, they will re-evaluate the listing at a later date, keeping in mind these regulations.

The European market is seeing a surge in the usage of MiCA-compliant stablecoins, as per a recent report by Kaiko. Circle, a stablecoin issuer, reportedly covers about 91% of the stablecoin market share in the region.