MUFG analyst: “Stablecoins are better suited to function as money than Bitcoin (BTC)”

An analyst at Mitsubishi UFJ Financial Group (MUFG), one of Japan’s three largest banks, assessed that stablecoins are more suitable as money than Bitcoin (BTC).

According to Crypto Basic, a media outlet specializing in virtual assets (cryptocurrencies), on the 17th (local time), MUFG’s Lee Hardman said in a report, “Stablecoins, which serve as digital cash, have recently been drawing attention,” adding that “stablecoins better meet the requirements of money in that they offer price stability and fast, low-cost payment services.”

He noted that Bitcoin’s price volatility is high, pointing out that this imposes constraints on its use as an everyday payment method. By contrast, he said stablecoins are more likely to be used as a medium of exchange because their value is stable as they are pegged to fiat currencies.

As discussions on stablecoin regulation expand in countries around the world, comparative analyses of their role as digital payment instruments are continuing.