Businesses should seek partners and solutions during crypto winter: Paxos report

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Blockchain infrastructure provider Paxos recently released a report, which aims to help the community look past the crypto winter and understand how to respond to current market conditions.

In the 20 pages of the Paxos Crypto Winter Report 2023, the company identifies several key opportunities for projects during the crypto winter, including finding solutions and finding potential partnerships for their projects.

In the report, Clara Medalie, research director at digital asset data provider Kaiko, says stablecoins represent a use case for crypto that has consistently proven itself over time. Medalie says stablecoins have been very useful for the whole industry.

Total value settled with stablecoins per year. Source: Paxos

Either way, stablecoins can still be improved. We need more transparency on the reserves of these stablecoins, which I think was going to see, adds Medalie.

Along with solutions such as stablecoins, the report also pointed out that those who view the crypto winter as a “season for building bridges” will come out ahead of others. According to the report, it is important to partner with those who build companies that implement technologies aimed at meeting the real needs of the financial sector.

Related: Paxos set to pull out of Canada amid regulatory uncertainty

Meanwhile, the United States regulating stablecoins could be a necessary step to keep the dollar strong, according to Denelle Dixon, CEO and executive director of the Stellar Development Foundation, who said dollar stablecoins are the way to go. to see this happen.

On the other hand, the Bank for International Settlements recently stated in a working paper that stablecoins are a less preferable form of token currency. The report compares stablecoins to bearer instruments, which prevailed during the days of free banking in the United States.

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