As part of their Money20/20 presentation in Las Vegas, Novatti an Australian publicly listed company, announced that they would be launching an AUD stable coin in November. What’s most interesting about their stable coin is that they want it to be more than just a coin for moving money between exchanges. They want it to be a stable coin that can be used interchangeably with the AUD dollar.
The idea is that if someone holds crypto, they can convert it to the Australian dollar, without having to go through the hassle of converting it to the actual USD and having to pay the extra costs that come with this process in forex. Holders can use their AUD stable coins to make payments for whatever services they want.
This is a big deal because it also incentives merchants to start accepting cryptos. That’s because it is not only cost effective but also creates an element of stability that most merchants are looking for. The biggest use case for this is in the global tourism industry, where people usually have to convert their home currency into a foreign currency. With stellar-based stable coins, travelers can just convert their stellar (XLM) to a local stable coin and avoid high exchange rates that come with international travel.
This is a good reason to believe in stellar as an investment. That’s because once such stable coins gain momentum in the market, the usage of stellar will also rise, and this will play a role in driving up its long-term demand. According to Lisa Nestor, who is the director of partnerships at stellar, there is an increased demand for stellar stable coins in the market.
This is a hint that many more stable coins could be in the pipeline, creating an integrated global mesh of stable currencies that are based on the stellar network. It’s a strong indicator that the stellar blockchain is gaining in strength going into the future. Stable coins add to the growing use case of stellar (XLM) in other areas as well, such as in asset tokenization where the stellar blockchain is gaining significant adoption.
However, the potential gains from all these growing use cases will be long-term in nature. In the short-term, stellar (XLM) is still tied to the rest of the market, and is yet to gain sustained upside momentum. In the day, stellar (XLM) is slightly bearish and has broken key support at $0.246 on the 200-day moving average. This could be indicative that Stellar could hit new lows in the course of the day. It could possibly drop to $0.238, a key stellar support point in the day.
But, these are short-term price movements. In the long-run, with its fast-growing use case, the value of stellar (XLM) could rise significantly over time. Actually, from its long-term charts, the value of stellar (XLM) is on an uptrend after hitting yearly support at $0.19. It’s definitely a worthy long-term investment, one that could see its value rise significantly over time. It has the potential to hit double-digit valuations in the future.