Cryptocurrencies have promised to usher in a new era of finance, yet mainstream institutions have been reluctant, slow adopters. Further, the cost of transactions and fluctuating prices have impeded viability for general purchases.

Diana Barrero of Yale University’s Blockchain Initiative explains that stablecoins, given their lower volatility, offer better integration into the existing regulatory framework.

She argues that stablecoins have potential in retail commerce and remittances, since today’s legacy systems require unnecessary and expensive intermediaries.