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With the advent of the Libra, currency launched by Facebook, much has been discussed about the stablecoins. But how can you use these currencies? Why use them instead of traditional fiat money? In this article, the expert Gustavo Cunha showed 10 use cases of stablecoins. See what are they:

Low-cost digital payments

Through the stablecoins, you can make payments via QR code for purchases of low values, such as a cup of coffee, for example. For this, a transfer of values in the digital field is made, followed by another transfer of the correspondent value in local currency to the receiving company. It is a digital representation of the paper money. For that reason, there is no need for intermediaries or paying fees. And you are not exposed to the volatility of the other cryptocurrencies.

Transfers between individuals are one of the best ways to use the stablecoins

The stablecoins also enable values transferring  from one person to another, without any intermediary of the financial system. That is to say, there are no charges for money transfers to another bank or electronic transfer among banks (TED or DOC), which is one of the differentials of the stablecoins. These transfers can be made through the digital wallet  or by messaging applications such as Whatsapp. And, once again, without being exposed to the volatility.

Get to know the BRZ, the first stablecoin pegged to the Brazilian Reais,  already listed on various exchanges.

Transactions available full time

The stablecoins can be moved at any time, every day. As the network is based upon a blockchain or DLT, it is always available. In addition, they do not depend on intermediary banking and or or business hours to work.

Transfers between different wallets

The transactions can be made every day of the week, at all times, and can also be made between different wallets – if they are in the same blockchain. This is currently not possible through DOCs or TEDs.

Tax documents and payment receipts integrated

The usability of the stablecoins go beyond simple financial transactions. With them, by simply using a QR code, it is possible to load a number of tax data. In this way, the documents are integrated, which facilitates the consumer´s life. Consequently, it is possible to have integrated information about the transfer, invoice records, tax paid, property, license number, among others.

Programming routines

The minimum and maximum values and automatic transfers can be directly applied in layers of intelligence that act upon the stablecoin, regardless of the application with which it interacts.

Sole purpose programs

The stablecoins´usability even include public funding. For instance, there are some programs with specific prerequisites in which the stablecoins can facilitate  the redundant validation of documents. These cases are related to public funding or subsidized programs, programs of tax exemption, or even closed supply chains. Therefore, instead of enabling each transaction, the agents can be enabled just once. As a result, the rules of operation are defined and programmed into the system via smart contracts. With that, the transactions are carried out safely and automatically.

Protection in cryptocurrencies

The stablecoins are also being used by cryptocurrencies traders who wish to allocate assets in currencies than do not suffer great volatility. This is important in times of great volatility in the market of digital assets, or when you want to wait for the best time to get into a trade. This type of use has been of great success and the investments reach the billions of dollars. The BRZ is one of those currencies that has been used for this purpose.

Earnings and dividends

The cryptoassets which represent shares in investments will probably have earnings distribution. For that reason, as the assets are in digital means, the wallets that receive the shares will not be able to receive other currencies than the digital ones.