> What if those people with unstable currencies just used a stable currency?
Most countries with unstable currencies either have strict currency controls, fixed exchange rates, or rampant corruption, so using USD through an established local bank is either not an option or obscenely overpriced.
> Like certain countries just use physical USD.
Yeah, that's nearly always going to be a better option than using a stablecoin, unless US currency is unavailable/illegal, or if you need to transfer money long distances (like with remittances).
But remittances are a huge industry [0] and the traditional providers charge significant markups, so stablecoins are pretty valuable for that alone.
Most countries with unstable currencies either have strict currency controls, fixed exchange rates, or rampant corruption, so using USD through an established local bank is either not an option or obscenely overpriced.
> Like certain countries just use physical USD.
Yeah, that's nearly always going to be a better option than using a stablecoin, unless US currency is unavailable/illegal, or if you need to transfer money long distances (like with remittances).
But remittances are a huge industry [0] and the traditional providers charge significant markups, so stablecoins are pretty valuable for that alone.
[0]: https://en.wikipedia.org/wiki/List_of_countries_by_remittanc...