This cryptocurrency is bitcoin’s biggest challenger yet — and it just might take over your wallet

Econofact

Stablecoins are testing the foundation of the financial system. The problem? How to regulate them.

Published: June 26, 2025 at 2:25 p.m. ET

As originally envisaged, cryptocurrencies such as bitcoin were intended to provide an alternative to government-backed money in all its uses. Bitcoin’s BTCUSD market capitalization has risen dramatically, but it remains a volatile speculative asset rather than a widely used exchange and payment method.

Instead, stablecoins have emerged as a viable alternative to the traditional banking system for payments and remittances. These digital coins seek to maintain stable value by pegging to currencies like the U.S. dollar DXY, combining blockchain technology with reserve backing.