Challenges in User Experience of Stablecoins Barriers to Widespread Adoption: ZachXBT

The proliferation of stablecoin tickers and token standards is fragmenting liquidity within the crypto ecosystem, resulting in a user experience that is costly, technical, and time-intensive, according to on-chain analyst ZachXBT.

Users encounter various challenges when transferring stablecoins, such as cross-chain bridging limitations, gas and transaction fees that must be paid in the native token of the respective blockchain, and inadequate universal token support across exchanges, ZachXBT noted. He provided the following scenario:

“Imagine you receive USDPT to your Solana address but discover that your wallet doesn’t list USDPT by default. Needing gas, you bridge ETH from Ethereum and wait several minutes, intending to swap USDPT for USD on a centralized exchange.”

The user may then realize that their chosen exchange does not support the token or offer swaps for it, forcing them to bridge to another blockchain, incur additional gas fees, download a different wallet, or register with a new exchange to complete the transaction.

The absence of a smooth user experience and intuitive user interfaces (UI) in the crypto sector continues to pose significant barriers to mass adoption and alignment with Web2 and traditional financial applications, industry leaders told Cointelegraph.

Related: Visa to start supporting stablecoins on four blockchains

Abstracting away the technicality: the future of stablecoins

Eventually, crypto exchanges will abstract stablecoin tickers and provide a user interface that displays only the fiat currency backing the stablecoin, such as the US dollar or British pound, according to Mert Mumtaz, CEO of RPC node provider Helius.