Introduction

A stable digital currency has the largest total address market (TAM) of any cryptocurrency—$90 trillion—according to Myles Snider, an advisor to the cryptocurrency venture capital firm Multicoin Capital. This estimate assumes global adoption of stablecoins as an alternative currency replacing fiat altogether. This is certainly a far-fetched possibility. However, it does convey the opportunity for stablecoins to impact billions of people in the way they transact.
Potential opportunities to leverage this technology include the use of stablecoins as safe-haven assets on cryptocurrency exchanges, the expansion of dollarization in emerging economies, P2P and P2B payments, integration with smart contracts, and the use of stablecoins as a central bank reserve currency. These opportunities vary in the time frame of addressability and factors leading to success.
This paper is divided into two sections. The first section consists of an overview of key concepts about the roles of money, the different types of stablecoins, and the historical circumstances surrounding stablecoins. The second section of the paper consists of use cases of each opportunity.