Stablecoin Complex User Experience Holding Back Mass Adoption: ZachXBT

The number of different stablecoin tickers and token standards fragments liquidity in the crypto ecosystem and burdens users with a poor experience that is costly, technical and time-consuming, according to onchain sleuth ZachXBT.

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

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

From there, the user can realize that his exchange of choice does not support the token or an exchange on that token and is forced to bridge to another blockchain, spend more on gas fees, download another wallet or sign up for another exchange to execute the transaction.

The lack of a smooth user experience and intuitive user interfaces (UI) in crypto remains one of the 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 away the technicality: the future of stablecoins

Crypto exchanges will happen eventually abstract via stablecoin tickers and present a front-end interface to the user that only shows the fiat currency under the stablecoin, such as the American dollar or the British pound, according to Mert Mumtaz, CEO of the Helius node provider of the remote procedure (RPC).