Stablecoins are the only digital assets with high exchange rate stability. Due to their binding to fiat, they allow users to control price fluctuations, fix profit and loss indicators. Recently, in the cryptocurrency ecosystem, it became popular to develop stablecoins, protecting their investors from high volatility as much as possible. The Cardano platform even decided to create two assets – let’s see what these coins can offer us.

What is Cardano?

In 2017, Input Output Hong Kong (IOHK) created a third-generation project called Cardano. Its founders are Ethereum (ETH) co-founder Charles Hoskinson and business mathematician Jeremy Wood.

This platform is based on the Proof-of-Stake Ouroboros protocol. According to the developers, Ouroboros helps with decentralization of the Cardano network. Moreover, the platform is famous for its security measures, which increases its popularity among users.

The main goal of the Cardano network is to ensure the users’ safety and the reliability of decentralized applications, systems and societies. Project carefully studies innovations in the blockchain technology field in order to constantly improve its network.

In the future, the Cardano project wants to grant free access to banking products and services for every person. It plans to popularize the idea of transparent payment systems and distribution of power within them.

The native crypto of the Cardano network is ADA. However, the company also can offer  new stablecoins for users.

USDA – the first regulated stable token

In 2023, the Cardano team plans to launch the first fully regulated USDA token with a 1:1 pegging to the U.S. dollar. This was announced on Twitter in November 2022 by Emurgo. It is also known that Emurgo has already signed a contract with a new financial partner, an American fiat company, whose name is still a secret.

Investors will be able to easily buy USDA with credit cards, bank transfers, ADA, direct deposits. The regulatory system of USDA is as close as possible to the traditional banking system, which is convenient and understandable to most users. Backing real assets in the form of U.S. dollars gives the USDA stablecoin advantages in reliability and long-term price stability.

Algorithmic stablecoin Djed

Most stablecoins are backed by U.S. dollars, euros and gold, but there are algorithmic stablecoins that are regulated by a certain set of special algorithms. Stability of such coins is ensured due to the balance between supply and demand. The main feature of an algorithmic stablecoin is decentralization, because it is controlled by a set of verified commands.

On January 31, 2023, Cardano launched an algorithmic stablecoin called Djed. The process was controlled by the COTI blockchain payment network. 

Conclusion

Cardano network has huge plans for the future. Its developers are united by the idea to give free access to blockchain technologies and banking services for anyone.

The stablecoins being developed by Cardano are now focused on:

• ensuring stability for a broad digital decentralized ecosystem;
• restoring confidence in the cryptocurrency, lost due to its instability in recent years, and attracting more users to the blockchain;
• creation of free economic relations without a controlling person.

What do you think about stablecoins? Share your thoughts in the comments below. If you want to learn more interesting facts about crypto then check out our blog! You might like our articles “Saga Solana Mobile” and “What’s New, Bitcoin?”.

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