[NEWS] BNB Chain launches initiative to enable stablecoin transfers without gas fees

On the 18th, BNB Chain started transferring stablecoins without gas fees. This is a strategic move aimed at accelerating stablecoin adoption and increasing the functionality of the network.

This change not only represents a significant improvement in efficiency for users, but will also have a significant impact on BNB Chain's overall infrastructure. It will also make BNB Chain more competitive and attractive in the blockchain industry.

Most stablecoins are backed by fiat currencies such as the US dollar or euro to maintain a stable value.

This makes them attractive for users who want to avoid the high volatility that is characteristic of cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). Another reason for the attention is that it is more suitable for cross-border payments than existing payment methods.

Representative stablecoins include Tether's USDT, Circle's USDC, and DAI issued by MakerDAO.

With this update, BNB Chain will waive gas fees for stablecoins such as USDT, USDC, and FDUSD through collaboration with centralized exchanges, wallet providers, and cross-chain bridges.

Increasing entrants into the cryptocurrency space by lowering the barrier to entry

The importance of stablecoins lies in their ability to act as a bridge between the world of cryptocurrencies and traditional finance. They are extremely effective tools for executing transactions, accessing DeFi platforms, transferring funds quickly and at low cost, and as a means of storing value in volatile markets.

However, since stablecoins are issued on the blockchain, they incur fees (gas fees). Even though they are low cost, it is true that some users hesitate to use them because of the gas fees. There are also fees for credit cards and QR code payments, but most are paid by the store, so users have little opportunity to see them.

Fees and the cumbersome image unique to Web 3.0 can be said to be one of the barriers to entry for stablecoins, but BNB Chain will now launch a service to transfer stablecoins without gas fees.

This move is possible through collaboration with various centralized exchanges (CEXs) and is primarily aimed at improving cross-chain liquidity.

Previously, moving stablecoins between different networks was costly and often complicated.

However, the new gasless transfer model will allow users to move assets more efficiently and smoothly, improving the overall liquidity of stablecoins across various platforms.

Furthermore, the ease of transferring stablecoins between different networks will allow users to use them for trading and even arbitrage trading. This could lead to an increase in trading volume on BNB Chain and other blockchains.

In the long term, gasless transfer of stablecoins could have a significant impact on the entire cryptocurrency market. It could lower the barrier to entry for new users and investors, potentially contributing to an increase in the stablecoin user population.

Reference: BNB Chain
Image: Shutterstock

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