The fight for ‘the stablecoin chain’ is about control

The competition for stablecoin liquidity is shifting focus from throughput to control versus openness. Established chains like Gnosis and newcomers such as Plasma and Arc are part of this evolving landscape. Currently, Ethereum dominates stablecoin issuance, but new stablecoin-specific blockchains aim to disrupt this status quo by offering specialized architectures. Gnosis advocates for an open system that accommodates multiple issuers without centralization risks, contrasting with chains like Arc, which is tied closely to USDC and controlled by Circle, posing centralization concerns. Gnosis emphasizes support for a variety of local currencies to cultivate a diverse ecosystem of stablecoins. While Gnosis champions openness, other chains prioritize performance and integration with specific issuers, leading to a tension between centralization and decentralization in stablecoin development. As these chains develop, the Ethereum Virtual Machine remains the standard, complicating the landscape for emerging protocols. Success for Gnosis hinges on its ability to foster adoption and prove its value against more centralized, performance-oriented competitors.

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