Bitcoin continues to trade in a volatile range, slipping roughly 2% over the past week while hovering near the $68,000 level. Over the last 24 hours alone, price action has fluctuated between approximately $66,700 and $69,100 highlighting the kind of short-term instability that often defines the asset.
At the same time, a major voice from traditional finance is weighing in on crypto’s evolving role. An analyst from Mitsubishi UFJ Financial Group (MUFG) has suggested that stablecoins may be better suited than Bitcoin for everyday payments.
MUFG: Stablecoins Fit the Role of Money Better
Lee Hardman, an analyst at MUFG, argued that stablecoins are increasingly being viewed as practical digital cash. Unlike Bitcoin, which experiences frequent and sometimes sharp price swings, stablecoins are typically pegged to fiat currencies such as the U.S. dollar.
Because of this peg, stablecoins maintain relatively stable value. According to Hardman, this stability makes them better aligned with the traditional functions of money particularly as a medium of exchange.
In simple terms, people want predictable value when making payments. Businesses also prefer accepting an asset that won’t lose 5% of its value in a single day. Stablecoins, by design, reduce that risk.
Why Bitcoin Struggles as Everyday Payment Money
Bitcoin was originally introduced as peer-to-peer electronic cash. However, over time, its role has shifted more toward being viewed as a store of value rather than a daily spending currency.
The main reason is volatility.
Sharp price movements can make pricing goods and services difficult. For merchants and consumers alike, unpredictable swings introduce uncertainty. While Bitcoin remains highly liquid and widely recognized, its fluctuating value limits its appeal for everyday transactions.
Hardman noted that price stability, fast settlement, and low transaction costs are essential characteristics of effective money and stablecoins currently meet those criteria more consistently.
Stablecoins Gaining Ground as Digital Cash
Stablecoins are often backed by reserves or collateral and pegged to major fiat currencies. Because they maintain stable value, they are increasingly used for payments, remittances, decentralized finance, and cross-border transfers.
Their ability to move funds quickly across borders at relatively low cost has positioned them as a practical bridge between traditional finance and digital assets.
As financial institutions continue exploring blockchain technology, stablecoins are emerging as one of the most realistic applications for real-world use.
Bitcoin’s Role May Remain Different
Despite the criticism regarding payment utility, Bitcoin’s broader appeal remains intact. Many investors still view it as a long-term store of value, a hedge against systemic risk, or a scarce digital asset.
However, the distinction is becoming clearer: Bitcoin may serve primarily as a digital reserve asset, while stablecoins function as transactional currency within the crypto ecosystem.
With Bitcoin trading near $68,000 but continuing to show volatility, MUFG’s perspective highlights a broader industry conversation not about whether crypto matters, but about which digital assets are best suited for specific roles.
As adoption grows, the market may continue separating assets by function rather than treating them as interchangeable.
