Bitcoin stays volatile while MUFG says stables work better as money

Bitcoin slips ~2% in 7d as MUFG touts stablecoins’ price-stable payments.

An analyst at Mitsubishi UFJ Financial Group has stated that stablecoins represent a more suitable currency option than Bitcoin for payment purposes, according to recent commentary from the Japanese financial institution.

Lee Hardman, an analyst at MUFG, one of Japan’s three largest banks, said stablecoins have attracted increased attention compared to other digital assets due to their function as digital cash.

Hardman stated that stablecoins better fulfill the requirements of money by offering price stability and fast, low-cost payment services, according to the analyst’s assessment. The analyst noted that Bitcoin’s high price volatility limits its use as a daily payment method.

Stablecoins are pegged to fiat currencies and maintain stable value, making them more likely to be used as a medium of exchange and payment, Hardman said.

The comments come as interest in Bitcoin and cryptocurrencies continues to expand globally, with financial institutions increasingly evaluating various digital asset classes for potential use cases.