Stablecoin’s Complex User Experience Holds Back Mass Adoption: ZachXBT

According to chain sleuth ZachXBT, the number of different stablecoin tickers and token standards is fragmenting liquidity across the crypto ecosystem and burdening users with a bad experience that is expensive, technical, and time-consuming.

Cross-chain bridging restrictions, gas and transaction fees that must be paid in the native blockchain token being used, and the lack of universal token support on exchanges are obstacles users face when transferring stablecoins across the crypto ecosystem, ZachXBT said. He gave the following example:

“Imagine you receive USDPT to your Solana address but you realize that your wallet does not have USDPT in the default token list. You also need gas, so you connect ETH to Ethereum and wait several minutes, and you want to exchange USDPT for USD on a centralized exchange.”

From there, the user may realize that their exchange of choice does not support the token or an exchange on that token and they are forced to connect to a different blockchain, spend more on gas fees, download another wallet, or register on another exchange to execute the transaction.

The lack of a seamless user experience and intuitive user interfaces (UI) in cryptocurrencies remains one of the biggest obstacles to achieving mass adoption and parity with Web2 and traditional financial applications, industry executives told Cointelegraph.

Related: Visa to start supporting stablecoins on four blockchains

Abstracting the technicality: the future of stablecoins

Cryptocurrency exchanges will eventually abstract stablecoin tickers and present a front-end interface to users that only displays the fiat currency underlying the stablecoin, such as the US dollar or British pound, according to Mert Mumtaz, CEO of remote procedure call (RPC) node provider Helius.