Agora CEO criticises yield-bearing stablecoins

Nick van Eck, CEO of stablecoin issuer Agora, argues that stablecoin issuers offering yield-bearing elements may hinder the core mission of stablecoins and risk being classified as security products in many countries.

Van Eck emphasises the importance of focusing on utility, liquidity, and ease of transaction to maximise outreach to individuals and businesses.

He criticises the strong ties some stablecoin issuers have with cryptocurrency trading firms, advocating for a model devoid of conflicts of interest.

Agora plans to launch its digital dollar (AUSD) on Ethereum (CRYPTO:ETH), aiming to collaborate with various cryptocurrency exchanges and fintech firms.

Van Eck envisions a future where stablecoins prioritise utility and transactional capabilities, aiming to contribute to the industry's projected growth to $3 trillion by 2030.