Mitsubishi UFJ: Stablecoins are more suitable for fulfilling the functions of currency than other cryptocurrencies.

In a report, Lee Hardman of Mitsubishi UFJ Financial Group stated that stablecoins are more suitable for fulfilling the primary functions of currency compared to other cryptocurrencies like Bitcoin. He said that merchants and users are more willing to accept stablecoins as a medium of exchange because their value is more stable, reducing the risk of assets depreciating during the transaction window. He also mentioned that stablecoins enable fast global payments and typically have lower fees compared to banks or credit card networks. Stablecoins are pegged to traditional currencies, making them a more predictable unit of account. However, he expressed concerns about the reliability of stablecoins' pegging, which depends entirely on their issuer or underlying support mechanism.