The European Central Bank has made a new proposal for the stablecoin. With this recommendation, the stablecoin could change its name.
Stablecoin can change the name
The instant and very active structure of the crypto money market can make some investors nervous. In recent years, stablecoins have had a big share in increasing confidence in the market.
However, stablecoins can also cause conceptual complexity. For this reason, the European Central Bank recommends changing the term stablecoin and avoiding this misleading. It is said that the definition of stable money, expressed in the term stablecoin, falls short of describing stablecoins.
The report published by the European Central Bank states that with the growth of stablecoins, their use as a new payment method or as an alternative store of value will be possible in the future.
Stablecoins, which are generally supported by currencies or assets such as gold, experience minimal price fluctuation, becoming a safe haven for investors. According to the European Central Bank, the name change in stablecoins can also be beneficial for the future of the market by eliminating the complexity.