The Polkadot community aims to position the blockchain network as a leader in stablecoin payments through a new proposal aimed at increasing adoption.

The proposal, unanimously supported by the community, seeks to lower the minimum balance required for Tether’s USDT and Circle’s USD Coin (USDC) on the Polkadot Asset Hub from $0.07 to $0.01. Community members argue that this adjustment would significantly enhance Polkadot’s appeal to stablecoin users. However, achieving the network's stablecoin payment objectives would also necessitate additional upgrades, such as reducing transaction fees on the Asset Hub by around 90% and implementing sub-1 block times.

The proposal emphasizes:

“These upgrades, in conjunction with super-apps like Telenova, could establish AssetHub (and thus Polkadot) as a hub for inexpensive, rapid, and most importantly, stable/reliable stablecoin transactions — serving as an exemplary case study for the benefits of building on Polkadot.”

Despite this, community consensus acknowledges that the current proposal represents a positive initial step towards enhancing Polkadot’s competitiveness in the realm of remittances against other blockchain networks.

Stablecoins are seen as a driving force behind the adoption of cryptocurrency technology in real-world applications, particularly in emerging economies such as Nigeria. These digital assets, typically pegged to the US dollar, offer stability amidst the volatility of cryptocurrencies like Bitcoin, making them popular for hedging against depreciating national currencies and facilitating transactions for goods and services.

Market analysts predict robust growth in the stablecoin market, with Ripple forecasting it to exceed $2.8 trillion by 2028. This expansion has significantly propelled the adoption of blockchain networks like Solana, Tron, and Ethereum, which collectively dominate 87% of the $162 billion stablecoin market.

Recent data underscores the popularity of stablecoins, with Tether’s USDT on the TRON network achieving a daily trading volume of $53 billion, surpassing Visa’s average daily volume of $42 billion in the first quarter of the year. Additionally, platforms like PayPal have extended their stablecoin offerings to blockchains such as Solana, citing advantages such as lower transaction fees and faster processing times compared to traditional financial networks.