Why are stablecoins important?

The main importance of stablecoins is that they provide ease to the average investor who wants to buy or sell cryptocurrency. If there was no concept of stablecoin, users would have hesitated to hold a volatile asset like BTC or ETH to trade with other cryptocurrencies. 

Stablecons also opened new doors of financial freedom, a major example of this being decentralized finance, which is now being compared to traditional real-world finance. Finally, stablecoins offer stability to users who are located in countries where their local currencies are not that stable which then saves them from potential losses due to significant price fluctuations.

Regulation and future of stablecoins

Stablecoins have truly made a big impact in regulated finance, a big example of which is the upcoming central bank digital currencies (CBDCs). However, despite this big revelation in the world of stablecoins, it is still an evolving landscape. Regulation, a clear framework, and increased collaborations are required to make stablecoins a common name in the traditional finance sector. 

At present, the future of stablecoins seems bright, and 2025 may as well prove to be a groundbreaking year for them, thanks to many regulations about stablecoins being introduced across the European Union.