Challenges in User Experience of Stablecoins Impeding Widespread Adoption: ZachXBT

According to on-chain investigator ZachXBT, the proliferation of various stablecoin tickers and token standards is fragmenting liquidity across the crypto ecosystem, resulting in a cumbersome, costly, and technical experience for users.

Users encounter several hurdles when transferring stablecoins, including cross-chain bridging restrictions, gas and transaction fees that must be paid in the native token of the blockchain used, and a lack of universal token support across exchanges, ZachXBT stated. He provided the following illustration:

“Consider you receive USDPT to your Solana address, but find that your wallet doesn’t include USDPT on its default token list. Needing gas, you then bridge ETH from Ethereum, wait several minutes, and wish to swap USDPT for USD on a centralized exchange.”

At this point, the user might discover that their preferred exchange does not support the token or a swap involving that token, which compels them to bridge to another blockchain, incur higher gas fees, download a different wallet, or register for an additional exchange to complete the transaction.

The absence of a seamless user experience and intuitive user interfaces (UI) in crypto continues to be a significant barrier to achieving mass adoption and keeping pace with Web2 and traditional financial applications, industry leaders informed Cointelegraph.

Related: Visa to start supporting stablecoins on four blockchains

Abstracting away the technicality: the future of stablecoins

Mert Mumtaz, CEO of RPC node provider Helius, believes that crypto exchanges will eventually abstract stablecoin tickers, offering users a front-end interface that exclusively displays the fiat currency tied to the stablecoin, such as the US dollar or British pound.