While Australia has been acknowledged as a technologically advanced country, it was actually surprising that they are not among the first countries considered as the early adopters of cryptocurrency. Regardless, they are among the countries that are relatively progressive in terms of the adoption and regulation of cryptocurrencies.
The cryptocurrency landscape has undergone a rapid transformation. While Bitcoin remains the most popular one, many are discovering different types of it. Among the most popular cryptocurrencies used and adopted among Aussies is the stablecoin. This cryptocurrency has been touted as a game changer as it was designed to maintain a stable value, allowing it to flourish, especially in the online casino industry of the country.
Below, let us learn more about stablecoins and understand their appeal among casino gamers in Australia.
What are stablecoins?
Cryptocurrencies in general are characterized to be volatile, with their value often experiencing dramatic fluctuations. However, this is not the case for stablecoins. The stablecoin is a crypto-asset that aims to maintain price stability with its value tied to that of another currency or commodity, typically on a one-to-one basis. It aims to provide an alternative to the high volatility of some of the most commonly known cryptocurrencies.
Let’s say that a stablecoin is tied to the AUS dollar, then that means 1 stablecoin is equal to 1 AUSD. At least, that is the goal. This stability makes them appealing for various applications, but mainly to the online casino industry.
As such, many crypto casinos are beginning to adopt stablecoins as a payment method option, allowing players to explore a currency that maintains value while still enjoying the security of their transactions as it is run through blockchain technology. This is the reason why Australian online pokies platforms support the use of stablecoins to provide a seamless gaming experience while allowing players to enjoy their favorite online pokies with high RTP rates and generous welcome bonuses.
Accordingly, there are three types of stablecoins: the fiat-collateralized, asset-collateralized, and algorithmic.
The fiat-collateralised stablecoin maintains a reserve of a fiat currency, such as the AUSD, as collateral, assuring its value. On the other hand, commodity-backed stablecoins are pegged to the market value of commodities such as oil or gold. These stablecoins generally hold the commodity by investing in instruments that hold them. Lastly, the algorithmic stablecoin may or may not hold reserve assets. Its value is made stable by controlling the supply through an algorithm.
Appeal of Stablecoins in Australia
With the online casino industry progressively shifting towards the adoption of cryptocurrencies, more gaming platforms are offering stablecoins as a payment option, especially among online casinos in Australia.
As hinted above, the utilisation of stablecoins among players as a payment option provides certain advantages to players:
1. Stability and Security
As mentioned above, cryptocurrencies are often characterized to be volatile, and utilising them in a game can be a daunting experience as it can easily undermine a player’s bankroll. With stablecoins, they alleviate this concern by providing a consistent value of currency, allowing players to play their favorite casino games without fearing that they may lose the value of it while they are in the middle of the game.
2. Faster Transactions
Another advantage a player can get when they use stablecoins in financial-related transactions in online casinos is how instant the transaction can be. Since stablecoins are run through blockchain technology, it allows players to do deposits and withdrawals without the delays often associated with bank transfers. This advantage can therefore enhance every player’s user experience in the fast-paced online casino environments.
3. Anonymity and Privacy
Lastly, stablecoins provide a level of privacy that traditional financial systems cannot offer. By using stablecoins, players get to conduct deposits and withdrawals without having to reveal their personal information to banks or third parties.
This level of anonymity is perfect for those who wish to keep their gambling activities as discreet as possible.
Final thoughts
From the looks of it, stablecoins are revolutionising the way transactions are conducted in the online casino industry.
The stability of their value, the speediness of transactions, and the anonymity and privacy they provide make it a desirable option for players. As acceptance of stablecoins in online casino platforms in the country continues to grow, they may be playing a significant role in shaping Australia’s online casino landscape.
With the right support from their government through well-placed regulations and proper consumer education, the future definitely looks bright for stablecoins in the Australian online casino market.
