Stablecoin User Experience Hurdles Impeding Widespread Adoption: ZachXBT

The proliferation of various stablecoin tickers and token standards is diluting liquidity within the crypto ecosystem and creating a frustrating experience for users that is expensive, technical, and time-consuming, according to onchain analyst ZachXBT.

Users encounter several challenges when transferring stablecoins across the crypto landscape, including cross-chain bridging limitations, gas and transaction fees that must be settled in the native token of the blockchain in use, and a lack of universal token support among exchanges, ZachXBT stated. He provided this example:

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

After this, the user may discover that their preferred exchange does not support the token or the swap and may hesitate to bridge to another blockchain, incurring additional gas fees, needing to download another wallet, or registering for a new exchange to complete the transaction.

The current lack of a streamlined user experience and intuitive user interfaces (UI) in the crypto space remains a significant barrier to achieving mass adoption and equivalency with Web2 and traditional financial systems, industry executives informed Cointelegraph.

Related: Visa to initiate stablecoin support on four blockchains

Abstracting the Technicalities: The Future of Stablecoins

Crypto exchanges will ultimately abstract stablecoin tickers and present a user interface that only shows the fiat currency backing the stablecoin, such as the US dollar or British pound, as noted by Mert Mumtaz, CEO of RPC node provider Helius.