January 22, 2024 – A new report by CoinShares has shed light on a groundbreaking development within the cryptocurrency landscape. Analysts predict the launch of a Bitcoin-based stablecoin in 2024, poised to revolutionize the stablecoin market with unmatched transaction speed and cost efficiency.
Anticipating a Bitcoin Breakthrough
Authored by Christopher Bendiksen, head of Bitcoin research, along with analyst Matthew Kimmel, CoinShares’ outlook report details the potential of a new Bitcoin project. This project aims to compete robustly in the stablecoin sector, offering a user-friendly and easily accessible financial instrument.
A Match for Current Market Leaders?
Bendiksen and Kimmel’s analysis suggests that a Bitcoin (BTC) stablecoin could rival, if not outperform, current stablecoin giants. They tout the Bitcoin blockchain’s proven stability and security as a significant advantage for hosting a stablecoin.
The Technical Edge of Bitcoin
The report emphasizes, “The Bitcoin blockchain boasts the longest history, greatest stability, least technical debt, and strongest assurances.” These factors contribute to Bitcoin’s potential as a stablecoin platform, despite existing technical barriers and user preferences that have traditionally favored other platforms.
Stablecoin Integration and Bitcoin Plugins
The optimism extends to the integration of stablecoin transactions within businesses and the incorporation of Bitcoin plugins. These innovations could further cement Bitcoin’s monetary properties and its stance against censorship.
Precedents and Future Prospects
Bitcoin-based stablecoins are not a novel concept, with previous developments on Bitcoin’s layer-2 network by Stacks, RSK, and Liquid Network. However, Trust Machines envisions a future where these stablecoins could transition to Bitcoin’s base layer.
bitSmiley Labs: A New Contender
One particularly exciting development is from bitSmiley Labs, which plans to launch a stablecoin in the “bitRC20 format” on the Bitcoin blockchain. Their “bitUSD” will be softly pegged to the U.S. dollar, backed by excess collateral, and its transactions will be transparently recorded on the Bitcoin blockchain.
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