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Bitcoin remains volatile as MUFG highlights stablecoins
Bitcoin continues to show price swings even as institutional debate over digital payments intensifies. BTC traded near $68,000, down about 2.25% over the past seven days, with a 24-hour range roughly between $66,700 and $69,100. Meanwhile, Mitsubishi UFJ Financial Group (MUFG) analyst Lee Hardman argues that stablecoins are a more practical option for everyday payments due to price stability, fast settlement, and lower transfer costs.
Why MUFG favors stablecoins for payments
In recent commentary, Hardman emphasized that stablecoins, which are frequently pegged to fiat currencies, function more like digital cash compared with Bitcoin. Stablecoins' relative price stability reduces payment friction, while blockchain settlement can be faster and cheaper than traditional rails. The analyst noted that Bitcoin's higher volatility limits its suitability as a medium of exchange, keeping BTC primarily positioned as a store of value for many investors.
What this means for crypto adoption and payments
As interest in cryptocurrencies grows across financial institutions and consumers, the distinction between payment-focused digital assets and store-of-value tokens becomes clearer. Stablecoins could see higher adoption in e-commerce, remittances, and merchant payments where predictable value and low fees matter. Bitcoin, despite its leading market cap, may remain the preferred digital reserve asset rather than a day-to-day payment method.
Market context and outlook
Financial institutions are increasingly evaluating a spectrum of crypto use cases, from tokenized assets and CBDCs to stablecoin-backed payment rails. For blockchain developers, payment providers, and regulators, MUFG's assessment reinforces the need to prioritize stability, compliance, and interoperability when building crypto payment solutions. Traders and investors should continue tracking volatility metrics, on-chain settlement times, and regulatory developments that could influence both stablecoin adoption and Bitcoin's market role.
Source: crypto
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