Bitcoin’s price has been on a bumpy ride this week, slipping roughly 2% over the past seven days as fresh commentary from Japan’s banking giant Mitsubishi UFJ Financial Group (MUFG) puts the spotlight on stablecoins instead.
At the time of writing, BTC is trading near $68,000. Over the last 24 hours, it has moved within a range of approximately $66,700 to $69,100, reflecting continued short-term volatility. On a weekly basis, the cryptocurrency is down around 2.25%, highlighting how quickly sentiment can shift in the digital asset market.
While Bitcoin remains the world’s largest cryptocurrency, an analyst at MUFG argues that when it comes to functioning as money, stablecoins may have the upper hand.
Lee Hardman, an analyst at MUFG — one of Japan’s three largest banks — said stablecoins are increasingly attracting attention as a form of “digital cash.” According to Hardman, stablecoins are better suited to fulfill the core roles of money, particularly because of their price stability and efficient payment capabilities.
Unlike Bitcoin, which can experience sharp price swings within hours, stablecoins are typically pegged to fiat currencies such as the U.S. dollar. This peg is designed to keep their value relatively stable. Hardman pointed out that this stability makes them more practical for everyday transactions.
He added that stablecoins offer fast settlement and low-cost transfers, features that strengthen their case as a payment tool. In contrast, Bitcoin’s higher volatility limits its usefulness for daily spending. A currency that can drop or rise significantly in a short period may not be ideal for pricing goods and services or managing cash flow.
The comments from MUFG come at a time when global interest in digital assets continues to grow. Financial institutions are increasingly examining different types of cryptocurrencies to determine where they fit best within the broader financial system.
For now, Bitcoin still holds its position as a leading store-of-value asset in the crypto market. However, as stablecoins gain traction for payments and cross-border transfers, the distinction between digital gold and digital cash appears to be becoming clearer.
With markets watching closely, the debate over which digital asset best serves as money is far from settled. But according to MUFG’s latest assessment, stability — not volatility — may be the key factor for payments in the evolving crypto landscape.
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