Bitcoin developers are exploring the concept of "fiatless fiat" as a potential alternative to stablecoins in the crypto payment market. Stablecoins have dominated the space, but some developers are concerned about their reliance on the US dollar and centralized governance. The concept of fiatless fiat involves using Lightning channels to create shared Bitcoin balances that can be continuously adjusted to maintain a peg to a fiat currency. While this approach offers simplicity and self-custodial control, it faces challenges such as online requirements, custodial risks, and potential exploitation of price movements. However, developers see the potential for a market of stability providers to create a more reliable ecosystem for users seeking stability in their transactions.



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