Blockchain infrastructure provider Paxos recently published a report aimed at helping the community look beyond the crypto winter and understand how to deal with current market conditions.
In the 20 pages of the "Paxos Crypto Winter Report 2023," the company identifies several key opportunities for projects during the crypto winter, including finding solutions and finding potential partnerships for their projects. In the report, Clara Medalie, head of research at digital asset data provider Kaiko, said stablecoins represent a use case for crypto that "continues to prove itself over time." Medalie said that stablecoins are very useful for the industry as a whole.
Regardless, stablecoins still have room for improvement. “We need more transparency around these stablecoin reserves, and I think we’re going to see that,” Medalie added. In addition to solutions such as stablecoins, the report highlights that those who see crypto winter as “bridge-building season” will be ahead of the rest. According to the report, it's important to work with those who are building businesses that implement technologies designed to meet "the real needs of the financial sector."
Meanwhile, Denelle Dixon, CEO and executive director of the Stellar Development Foundation, said U.S. regulation of stablecoins could be a necessary step to keep the U.S. dollar strong, saying that U.S. dollar stablecoins are “the way to get there.” On the other hand, the BIS recently stated in a working paper that stablecoins are a less popular form of tokenized money. The report likens stablecoins to bearer instruments, which have flourished in the era of "free banking" in the United States.
