The American entrepreneur, John McAfee, with a tweet, advocated the importance of stablecoins in decentralized exchange (DEX). John McAfee is known to be a keen supporter of the crypto industry.
The Solution to the Problems of Decentralized Exchange
McAfee begins by stating how the use of a decentralized exchange poses a problem for users during crypto-fiat currency conversions.
He says that the main issue with the decentralized exchanges is in ‘getting one’s fiat currencies in and out’. He further adds that this becomes extremely difficult as a decentralized exchange does not collect any information regarding a person’s name, social security number, address, email and so on and so forth.
He also created a picture of the world in an unspecified time in the future when the fiat currency would rapidly lose importance and consequently the power of the crypto would increase:
“…you can only buy houses and cars and shoes with crypto, with Bitcoin and Monero and Ethereum and others […] soon we’ll have the ability to acquire everything that we need with crypto.”
In such a scenario when one can fulfill all one’s needs using crypto, McAfee asserts that stablecoins like DAI would come to the aid of DEX users who face issues with fiat withdrawals.
He further emphasized that DAI, programmed through smart contracts, cannot lose dollar parity beyond the percentage point of one irrespective of the trend in the crypto market:
“Imagine getting your currency out in DAI, it’s always going to be worth a dollar.”
‘Uncertainty for Stablecoins’
McAfee’s statement comes at a time when speculations are rife after the group of the seven most powerful nations of the world, G7, drafted a report in which they deemed digital currencies as a threat to the global financial system.