Reeve Collins, founder of blockchain neo-bank WeFi, told Cointelegraph that the number of viable stablecoins will increase as AI and account abstraction simplify management for users. Users will no longer have to actively manage decentralized finance transactions or implement complex trading strategies.

These developments will increase demand for yield-generating assets such as synthetic dollars and algorithmic stablecoins, creating a vibrant ecosystem of products. As the technical barrier to entry decreases, these instruments will compete for investors’ attention.

The current stablecoin industry is under regulatory scrutiny. The US Financial Services Oversight Council released a report highlighting the systemic risks of stablecoins. In Europe, MiCA-compliant stablecoins make up the majority of the market.

How do you think these developments will affect the stablecoin market? Share your thoughts in the comments.