What are stablecoins and how can merchants benefit from them?

What are stablecoins
What are stablecoins? Stablecoins have recently become a popular topic in the cryptocurrency world. Stablecoins are digital assets created to maintain a stable value. They are designed to reduce volatility, which is why they are gaining increasing attention from investors and merchants alike. In this blog, we will explore what stablecoins are, how they can be used for payments, and why merchants should consider accepting them as payment. We will also discuss the various types of stablecoins available today and their benefits over other cryptocurrencies.
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What Are Stablecoins?

Stablecoins are digital tokens that aim to maintain a stable value relative to an underlying asset, such as fiat currency or another cryptocurrency. Their value is typically “pegged” to that of an existing currency, such as the US dollar or euro.

The most popular type of stablecoin is a fiat-backed coin. Stablecoins are backed by actual government-issued currencies like the US dollar or euro. These coins provide extra security because they’re pegged directly to an existing currency’s value. Other types of stablecoins exist as well, such as crypto-collateralized stablecoins, commodity-backed stablecoins, and algorithmic stablecoins.  Crypto-collateralized stablecoins are backed by other digital assets, such as Bitcoin or Ethereum. This type of peg helps ensure that the price remains relatively constant despite market fluctuations in other cryptocurrencies and fiat currencies. Commodity-backed coins are backed by physical commodities like gold or silver, while algorithmic coins use complex algorithms to stabilize their prices instead of being pegged to any particular asset or currency.

Why Should Merchants Accept Stablecoins?

Merchants should consider accepting stablecoins (and cryptocurrencies as a whole) as payment due to several advantages they offer over traditional forms of payment like credit cards and bank transfers: low transaction fees; increased security; faster processing times; global reach; no chargebacks; increased liquidity; and more transparency than traditional banking systems provide. All these factors make it better for businesses both large and small to accept payments using digital assets like stablecoins without having to worry about high processing fees associated with other forms of payment like credit cards or bank transfers.

Stablecoins have a stable value

Stablecoins offer several advantages for payments compared to traditional currencies and cryptocurrencies alike. First, because their value is pegged to an existing asset or currency, transactions using them remain relatively unaffected by market volatility compared to other forms of payment like Bitcoin or Ethereum (which can experience dramatic swings in value). This makes them attractive for those who want more stability when making transactions with digital assets.

Low transaction fees

Second, many businesses accept stablecoins due to their low transaction fees compared with traditional payment methods like credit cards and bank transfers. This allows merchants and customers alike to save money on transaction fees while still maintaining high levels of security when completing payments online with cryptocurrency assets like stablecoins. The fees for stablecoin payments are as low as 0.5% whereas credit card processing fees are around 3%. Visit our best crypto payment gateway comparison page in order to discover the gateways with the lowest fees.

Most popular stablecoins

In order to generate sales with crypto payments it is important that the most popular stablecoins are accepted at your store. The most popular stablecoins include USDT, USDC, BUSD, and DAI. These are all multi-billion cryptocurrencies with millions of users and belong amongst the biggest cryptocurrencies in the world. USDT is a cryptocurrency that is backed by the US Dollar, while USDC is a stablecoin created by a consortium of financial companies. BUSD is a stablecoin backed by Binance, one of the world’s largest cryptocurrency exchanges, while DAI is a decentralized stablecoin created on the Ethereum blockchain. These coins offer users a safe and secure way for merchants to accept crypto payments


In conclusion, we can see that there are many benefits for both merchants and consumers when utilizing stablecoins as a form of payment compared with traditional methods such as credit cards and bank transfers: lower transaction fees; increased security; faster processing times; global reach; no chargebacks; increased liquidity; more transparency than traditional banking systems provide etc. As the popularity of cryptocurrencies continues to grow globally and more people become familiar with these digital assets — especially those offering greater stability through pegs — we can expect more and more merchants around the world to begin accepting them for goods and services.

Accepting stablecoin & crypto payments is easy and starts with selecting a suitable crypto payment gateway which allows merchants accepting crypto. We have reviewed the best crypto payment gateways, so you can make a well-informed decision.

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