The government financial institutions like banking regulators and currency issuing authorities like reserve banks are studying stablecoin systems to learn more. Recently, a working committee of the G-7 has announced a report investigating the impact of stablecoins in the world. Three conventional banks including Banco Bradesco, Bank of Buscan and Rizal Commercial Banking Corporation have announced stablecoin projects of their own. They have chosen IBM’s blockchain service for this purpose and are really upbeat regarding their future developments.
This is a sign that the conventional banking sector may fully embrace the stablecoin revolution on their own in a few years time. The sector’s current innovators and trend-setters will therefore become much more influential in decision making in the future as they are making technological breakthroughs on the back of which these decisions will be made. This is why the stablecoin revolution will go a long way in making way for cryptocurrencies to succeed.
While many of the blockchain-based stablecoin projects rely on a blockchain network of their own to operate, many of the new comers are looking at already existing secondary networks for their operations. While a network like the Ethereum blockchain can easily be used to build and operate a stablecoin, banks may look to a centrally responsible entity to offer them blockchain services like IBM's Hyperledger fabric.
Since it has emerged that banks are looking to study and eventually use the stablecoin technology, one can expect different plans of actions from their side. The central revenue banks may end up relying on their private blockchain networks because they cannot afford to delegate this power. Commercial banks as already witnessed will in all likelihood use enterprise blockchain solutions like the ones offered by IBM and R3 Corda. But, a few willing parties may look to benefit from the existing infrastructure as well.
Backpacker Coin (BPC) is one of the innovative projects that banks and other financial institutions can look at. Instead of fluctuating a lot like other stablecoin projects, the Backpacker Coin doesn’t fluctuate at all, giving the coin a truly stable $1 value. The Backpacker ecosystem is also extremely important for a true borderless stablecoin of the future. BPC users can transact with the currency extremely usefully with very less transaction fees and easily pay remotely. The project is especially useful for the backpacker community and the travel industry overall.