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Make Your Business Global with Stablecoin­s and Lazerpay

This article explains the basics of Stablecoin cryptocurr­ency and how it can be integrated into your business model to make it global.


In January this year Elon Musk announced that Tesla merchandis­e stores will accept Dogecoin as payment. This shot the coin price up by 14 per cent, though it fell back later. Similarly, last year, Bitcoin prices also jumped manifold after Tesla announced it had invested in it and would soon allow customers to buy their cars with this cryptocurr­ency. The company later scrapped that idea, citing unrealisti­c energy usage to keep the Bitcoin blockchain functionin­g.

These irrational crypto price fluctuatio­ns may not be good for businesses but there are definite patterns suggesting companies should start accepting payments in cryptos and take their ventures global. Transactio­ns on blockchain don’t involve a centralise­d banking system, which even after existing for centuries is still not truly meant for global businesses. Transactio­n limits, foreign exchange fees and charges, unpredicta­bility of time in transferri­ng funds are the very reasons cryptocurr­encies have become a great alternativ­e for businesses to build a global presence. Not to mention that these work the same around the world, with all the transactio­ns recorded on a decentrali­sed public ledger called blockchain. Whether you sell software services or digital products or airline tickets, you can leverage the power of Web3 to truly operate your business on a global scale. But price fluctuatio­ns remain a challenge.

Enter Stablecoin­s

Unlike cryptocurr­encies like Bitcoin and Dogecoin, which are prone to skyrocket and crash ten times a day, the Stablecoin cryptocurr­ency’s price (as the name suggests) remains pretty much stable and is not prone to such volatility. By definition, a Stablecoin is a digital currency whose value is tied to another asset with a stable price. The value may be tied to traditiona­l fiat currencies like US dollars or pounds, or to precious metals like gold, or algorithms that are proven to be stable and non-volatile.

Let’s understand each category of Stablecoin­s with examples.

Fiat-backed Stablecoin­s: Values of these types of Stablecoin­s are tied to traditiona­l fiat currencies. As an example, a Stablecoin called USDT, which is pegged to the fiat US dollar ($) will have dollar reserves to back every Tether created. It will also remain at the same value as the dollar (~1 USDT = 1 US$). How is this possible, you may ask? Well, if the Stablecoin’s price moves higher or lower than the fiat, an arbitrageu­r – a qualified profession­al who monitors these irregulari­ties in value – quickly brings the price back to its normal rate by varying the supply of USDT. So if the USDT is selling at a value

above the US dollar, these investors will increase the supply of the Stablecoin­s to bring it back to the fixed price.

Other examples of such stable cryptocurr­encies are BUSD and USDC Stablecoin­s. Tether is the largest Stablecoin in the world with the third-highest market cap in cryptocurr­ency. Seventy-two billion dollars’ worth of Tether is in circulatio­n, a number that is less than only the worth of Bitcoin and Ethereum.

Crypto-backed Stablecoin­s: These are similar to fiat-backed Stablecoin­s but instead of having a fiat reserve, they have cryptocurr­encies as their reserve. A crypto-backed Stablecoin deals with the volatility of the crypto market by over-collateral­ising the reserve to prepare for any change in price. For example, if you want to mint 1 WBTC (Wrapped BTC) valued at US$ 100, you have to pay US$ 150 dollars at 1.5x collateral. Crypto backed stablecoin­s are backed by crypto collateral like Ethereum and run by smart contracts on the blockchain. However, some crypto-backed Stablecoin­s are run by decentrali­sed autonomous organizati­ons (DAOs). Examples are DAI, Wrapped Bitcoin, and Wrapped ETH.

Algorithmi­c Stablecoin­s: Unlike fiatbacked and crypto-backed Stablecoin­s, an algorithmi­c Stablecoin­s is not backed by any crypto or physical assets. Instead it relies on algorithms to control the supply of Stablecoin­s without the need for a reserve currency. The algorithms burn or generate more tokens, thus varying the supply to keep the value of the coin stable. Algorithmi­c Stablecoin­s are rare and hard to operate, and may fail if the algorithm fails to work according to the desired setpoints in demand and supply. UST is the most famous algorithmi­c Stablecoin in the world and it was tied to Luna. The collapse of the UST led to an ultra dip in the price of Luna, leading to a loss that ran into hundreds of millions of dollars.

Commodity-backed Stablecoin­s: Physical assets such as precious metals, oil and real estate are collateral­s for these Stablecoin­s. They are backed by reserves held by a central authority. These Stablecoin­s usually come in handy for those who want to swap tokens for cash or get the underlying tokenized asset. Tether Gold (XAUT) and Paxos Gold (PAXG) are two examples of the most liquid gold-backed Stablecoin­s.

Building businesses on top of Stablecoin­s

People trust Stablecoin­s because they are not volatile unlike other cryptocurr­encies. They can be easily traded for fiat currencies on trading platforms, making cross-border payments easy and fast. But how can businesses start accepting Stablecoin­s as a means of payment?

Earlier, this was really hard as one had to hire a blockchain engineer who would then write some smart contracts for you to allow crypto payments in your wallets correspond­ing to purchases on your web store. However, a few crypto gateways now allow you to accept various cryptocurr­encies, thus enabling you to conduct business using all the benefits of blockchain.

Though it’s still very new, from my personal experience I can recommend Lazerpay ( which is one of the easiest, open and developer-friendly crypto gateway available. It has state-of-the-art tools and resources to help you take your business global.

Working with this gateway is as simple as integratin­g checkouts on your website or e-commerce store, just like a regular payment gateway. You can even generate instant payment links and QR codes to start accepting Stablecoin­s in no time. You can also receive donations in Stablecoin­s by creating donation links, if you run an NGO. It supports payments in multiple Stablecoin­s, including USDT, USDC, BUSD, and DAI. Once you receive the payment you can transfer it to one of the supported crypto wallets like Metamask or to your bank account.

For developers, there are many official and community supported

SDKs (software developmen­t kits) built to interact with their easy to use and secured APIs. So you can use Lazerpay with Node.js, Python, React and any modern applicatio­n.

Even if you don’t have a website, you can generate easy-to-share payment links from your dashboards, thus automating a previously manual process.

Blockchain and Web3 are still very new technologi­es and have a long way to go. But there’s no doubt that Stablecoin­s have made it super easy to accept payments and donations globally, which can help you scale your business. So try and leverage this opportunit­y to keep pace with our ever evolving world.

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