The biggest support for the blockchain ecosystem is stablecoin. In the entire blockchain world, besides BTC and ETH, the third largest market share is stablecoin, such as USDT, USDC, and DAI. The market value of these stablecoins combined far exceeds that of all other public blockchains and DAPPs. In the future, the market for stablecoins will only grow larger. Stablecoins and public blockchains will together challenge SWIFT to become the underlying network for global payments and the largest global capital trading market. Unfortunately, IC has no idea about the future global largest stablecoin market, and has no plans to introduce stablecoin issuers. They even think that stablecoin giants like USDT and USDC will come to the IC network to seek cooperation on their own. This is really commercial ignorance and dullness. Such a view lacks long-term marketing planning and also lacks respect for all IC users.
The foundation has more than 20% of the voting power in IC governance. I hope Dfinity can add stablecoin as a key work in the roadmap, so that the arrival of stablecoin can promote the prosperity of the ecosystem as soon as possible.
I think some are failing to realize how important UX is for blockchain applications. We won’t have widespread adoption if users have to pay a lot in fees or wait a long time for token transfers to finalize.
IMO, integration with Circle is the best option, but they charge $10,000,000 for that….
Just a curious question:
Why choose USD as the stablecoin of choice compared to other safe-haven fiats like CHF?
We know current US regulators are not crypto friendly. Choosing stablecoin based on underlying asset of a fiat that its government can rug anytime may not be wise.
Why not choose CHF as the stablecoin? We know the Swiss government is more crypto-friendly and pro-freedom.
Sygnum Bank, one of ICP’s validators, also already has DCHF. Why not make proposal to them to release its stablecoin version on ICP?
I hope that the recent ICP price increase event will give Dfinity a new understanding.
When the market position continues to rise, more users will pay attention to the chain, and more people will learn about various IC Dapp, which will also bring more and more developers to join IC.
I hope Dfinity will actively promote the development of DeFi, lending, and stablecoins.
With respect to your opinion… we too have been waiting for a long time to create a stable token.
But let’s think about this more, even if it takes more and more time, the ICP community is not losing anything, if ICP is growing fast and unhindered, one reason is that we don’t have a stable token yet.
If stable tokens like ckBTC and ckETH are created, that’s great and a new path will be opened…
If we prioritize speed and fail to develop a truly secure stable token, we may experience irreparable leaks.
If USDT can be rebuilt like ckETH it would be great, otherwise if a native stable token is introduced we will no doubt come under the eyes of big banks and feds and of course they may challenge ICP.
I think it makes perfect sense why USD would be the “first” stablecoin introduced to the IC ecosystem. It is currently, for better or worse, both the leading international settlement currency worldwide for commerce and traditional finance and the leading choice for currency denominated stablecoins in other crypto environments.
This makes it the natural first choice to gain rapid adoption; it’s what people are used to. A CHF pegged stable coin is a novel idea and certainly would have benefits, but I think we are a long way from that gaining widespread adoption.
I think the goal here should be minimizing barriers to entry, both for individuals and institutions looking to participate and utilize the IC protocol. For this reason, it would make sense to pursue USD pegged stablecoins as the first introduction and perhaps other currencies could be explored later.
While the USD may be a common choice for stablecoins, but in the crypto industry reality it is not used as international settlement, but the primary use is for protection against the downturn in fiat value. In this context, the Swiss Franc (CHF) stands out as a superior option due to its historical resilience and strength during economic downturns.
The Swiss Franc has consistently proven to be a stronger currency compared to other fiat currencies, including the USD. If the goal is to have a stablecoin backed by a fiat with a robust and reliable value, choosing the Swiss Franc over the USD becomes a logical choice.
The CHF is renowned and popular as a safe haven currency in the global investing world, particularly among financial institutions. Its stability during times of economic uncertainty makes it an attractive choice for individuals and institutions seeking a stablecoin that offers not only familiarity but also a track record of being a reliable store of value.
I think what you are saying has validity. I think the most important issue here is getting the FIRST stablecoin into the ICP, whether that would be USD pegged or CHF pegged, personally I think USD would be the natural choice as a FIRST option. I see no reason we couldn’t have many stablecoins in the future including those pegged to CHF, EUR, JPY, etc…
However I think this thread’s main focus is on whether ckUSDT / ckUSDC is sufficient, or if it would make more sense to steer toward a native stablecoin integration as well.
Creating a new stable coin involves significant challenges including maintaining its stability, ensuring regulatory compliance, and establishing trust among users.
with the existence of well-established stable coin like USDC could mean that a new ICP stable coin would struggle to gain traction and provide sufficient added value to justify its existence.
Why create a new solution for something that already works…
Based on the collective feedback, we’re interested to understand if issuing an IC native, fiat-backed stablecoin would be supported by the community.
Brale is a regulated stablecoin issuer licensed in the United States. To date, we’ve issued stablecoins on nine blockchains with treasury reserves held with U.S. financial institutions audited by a third-party accounting firm. Brale supports on/off ramping for U.S. businesses with issued stablecoins supported by a number of on/off ramps, custodians, and liquidity providers.
An ICP partner organization is also able to earn a majority of program revenue from underlying treasury reserves which could be used to further invest in the stablecoin’s growth.
As others mentioned, there are tradeoffs between new issuance and waiting for established stablecoins, but we would be able to support significantly reduced time to market for issuance of a regulated stablecoin if it’s valuable.
How do you think about setting up a UTOPIA for this purpose or using a subnet rental with servers only in the US? Curious if where the servers are and who controls them is an important consideration
This is all the more important when you think about differentiating yourself from circle no?
Look at the blockchain market cap rankings, from the 9th to the 18th spots are communities with a massive number of users, it’s the users and the large community that drive their market cap rankings, it’s the multitude of users holding tokens that maintain the network’s value! If we continue to lack a native stablecoin, how can we attract more users to ICP? Without a stablecoin, the IC network will find it challenging to create more influence. Let’s not rely on ckUSDT anymore, can ckUSDT be used to pay for accommodation and food during travel? The travel business worldwide has long begun to support various USDT payments, yet our ICP network’s native stablecoin is still nowhere to be seen!! Please, let’s unite as a community and do something together to push for the arrival of a native stablecoin! Whether it’s the CHF, the GBP, the EUR, or the US dollar, we need a native stablecoin for daily savings and payments!
Without a native stablecoin, dreaming of being in the top three in market cap is absurd and impossible. Please, let the Dfinity actively market, seek cooperation, engage with Tether or Circle, and invite more stablecoin issuing institutions to come to ICP as soon as possible.
I can confidently predict that with a native stablecoin, the East Asian community and Chinese communities worldwide will have at least tens of millions of users engaged in savings and payment circulation on ICP. Whether it’s registering for ii, using NNS, or using OpenChat as a social and payment application, the user growth within two years will definitely exceed tens of millions!
If we still lack a native stablecoin by 2024, people will sell off ICP and transfer their investment profits back to ETH for lending and savings. This is not a matter of safety but rather a matter of daily savings and convenient payment. The inefficient and risky promotion of a native stablecoin for ICP seriously affects all ICP users, including SNS development teams.
