The proliferation in the usage and types of Stablecoins has gained the attention of the once archaic financial sector. In addition to offsetting market volatility of digital assets, institutional players have realized the potential for Stablecoins to optimize core functions of finance.
The market size of Stablecoins have exceeded $5 Billion in 2019, showing a 47% increase from prior year. The trading volume has also seen a sixfold increase in the same time frame, with $30 Billion changing hands over a 24H basis. Major countries such as China, Singapore and Canada are researching similar Stablecoins backed by the Central Banks. Similarly, we can see the adoption from companies such as Walmart, IBM, and Facebook with supply-chain and incentive based use cases for Stablecoins.
Stablecoin trading has not only improved in transaction volume but has also become more diversified. Today, 95% of the trading volume comes from Tether, and about 5% of the trading volume comes from stablecoins such as USD Coin (USDC) and TrueUSD (TUSD). This is in contrast to the 99% of trading volume being traded on Tether in 2018. There is no doubt that more stablecoins will be introduced in the future, and the proliferation of new stablecoins is just the beginning.
With more stablecoin projects available on the market, it is important to have a trusted organization that unites different people who share the same vision for stablecoins.
World Stablecoin Association (WSA)
The World Stablecoin Association (WSA) is an independent, not-for-profit organization, headquartered in Geneva, Switzerland. Founded in 2020, the WSA unites business leaders, enterprises, community builders, and regulators internationally. Together we promote the global development of stablecoins and actively engage in the advocacy for digital currencies. To achieve this, the WSA will be:
Working with different stablecoin projects and regulatory bodies to promote the acceptance of stablecoins from both the retail and the institutional levels.
Raising the awareness of stablecoins globally through online and offline events, including educational publications.
Publishing general guidelines on stablecoin best practice and compliance requirements.
Researching stablecoin use cases and enabling adoption across different industries.
Fostering collaborations between organizations to expedite the development and adoption of various types of stablecoins.
Creating strategic initiatives and working groups to examine emerging issues in the digital currency space.
The WSA strongly believes in the future of stablecoins and will provide support to the global stablecoin community on an ongoing basis.