Can someone please explain to me the utility of non-USD stable coin?

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I am trying to truly understand stable coin, the problem it solves, etc. There is ALOT of corporate BS mumbo jumbo about this stuff out there, and its hard to discern fact from fiction, so I'm hoping the more experienced folks can support me and identify the flaws in my thinking. My understanding of stable coin is it allows you to access the chain and purchase assets that may be denominated, say in USDC, without having to use bitcoin or some other equally volatile digital currency. Since USDC is 1:1 with the USD, then if you wish to purchase a mutual fund that one day may be on chain, you can use USDC and effectively pay the same amount of "money" as you would had you purchased it traditionally with USD... except things will settle instantly which is a huge benefit operationally to banks and also for the investor who gets to lock in the exact rate they see. I feel like this is some time away from happening though as I don't think there is any near term plans for assets like stocks, bonds, to be on chain and denominated in USDC... correct me if Im wrong. Another use case I can envision is if you are company, say in Asia, purchasing USD denominated goods, rather than having to go through the exchange rate risk that arise from longer settlement times, if you already hold USDC, you can send USDC to the vendor and they would happily accept it since its 1:1 backed with USD so its the same as them being paid USD. Now, what is the purpose of non-USD stable coin... take for instance Canada is beginning to have stable coins emerge. Looking at my use case #1, if I think its far off for US to adopt tokenizing assets and other things on the chain and denominating them in USD, Canada is certainly going to be even further off... so I feel like at least in the short term this isn't a good use case. Now for my second use case, I suppose it applies, and may apply to Canada more so then many other countries since CAD is a top 5 transacted currency.. SO I guess that's a potential utility? I was thinking another utility could be if I am a company that is in Canada and perform a lot of transactions with the US and so am constantly shifting CAD --> USD (and honestly this would work the other way), rather than having to transact CAD --> USD, I can transaction CAD Stablecoin --> USDC... so in a way this is an on-ramp to the chain for Canada to participate in the US market... Another thing I was thinking about is liquidity concerns with non-USD stable coin... but I believe at least in the Canada example, it is backed 1:1 with CAD, so technically there shouldn't ever be any liquidity concerns?   submitted by   /u/Ill-Square-1123 [link]   [comments]