Stablecoin - News, Opinion & Analysis

Stablecoin

261 Articles 21 Followers

A stablecoin is a digital token that is pegged to a certain value, usually in a 1:1 ratio with a fiat currency like the US dollar. For example, the USD Coin (USDC) launched by Coinbase is backed by US Dollars in a 1:1 ratio. Most stablecoins in reality deviate from the $1 position ever so slightly, 

Most stablecoins are pegged to a fiat currency, with the US Dollar being a popular choice. However, some stablecoin ventures distinguish themselves by backing their stablecoins with other assets. 

An example of this kind of stablecoin is the well known MakerDAO ecosystem, which is a stablecoin ecosystem that consists of two tokens: the stablecoin DAI and the governance/utility token MKR. The stablecoins are backed by Collateralized Debt Positions which demand Ether as collateral. There is a complex mechanism in place to ensure that the token does not deviate from the $1 value.

Stablecoins have been ascending in popularity in discussion in 2019. This is largely because there is some consensus in the idea that stablecoins are effective in combating the volatility of the market. Since the value of these tokens remain stable, investors who use stablecoins do not have to worry as much about bear markets, and can use these tokens to make investments during these bear markets to gain profit.

As most stablecoins are pegged to fiat currency, there has been scrutiny on the finances of stablecoin issuers, who must confirm that they possess the reserves to back the total value of stablecoins. This increased scrutiny has led to calls for more audits and better transparency.


ECB: Stablecoins a Less Plausible Store of Value, Term Stablecoin is Misleading

23 Sep 2020 1 minute read 0 comments Abhi K

The European Central Bank (ECB) issued a report on September 22 where it spoke, among other things, on stablecoins. It tentatively suggested that digital assets could be useful, but also notes that it poses risks to current systems. The report discu...

Origin Releases OUSD, a Combination of USDT, YFI & AMPL

23 Sep 2020 1 minute read 0 comments Abhi K

On September 23, the Origin Protocol released its Origin Dollar (OUSD) stablecoin with an accompanying wallet, which provides interest on savings without requiring prior staking or farming. The stablecoin does not require staking or addition to a li...

Stablecoin: Why We Need It

21 Sep 2020 5 minute read 1 comment MintDice.com

The cryptocurrency market is incredibly fast-paced, with coins often fluctuating in value several times a day. This is evident in the case of Bitcoin's price, which saw an increase from a little above $5,000 to a record high of $19,783.21 in December...

France chosen Tezos (XTZ) to power the CBDC Stablecoin

18 Sep 2020 1 minute read 13 comments PVMihalache

France effort to develop an stable-coin pegged on Euro is moving forward, as Societe Generale announced the partnership with Nomadic Labs. The updated took place on the 15th of September, as the major Tezos development firm shared the news via Twitte...

0 friction stablecoin conversion on ViteX

17 Sep 2020 1 minute read 0 comments Isda Chen

Why  you need stablecoin conversion With the popularity of the DEFI concept from the Middle of June, stablecoins also had an eruption and the total market cap attained over 14 billion USD. There are many scenarios that need to use stablecoins, but e...

Worried About Ethereum Transaction Fees? Try Out Stablecoin on Tron Blockchain

16 Sep 2020 1 minute read 0 comments NOWPayments

For the past few weeks, there has been an increase in ETH transaction fees, which has led to a disruption in the market, when they reached an average of $10.33. It called for the need for alternatives that can save traders from the skyrocketing trans...

EU Heavyweights Want Stablecoins to be Regulated Before Being Allowed to Operate

16 Sep 2020 1 minute read 0 comments Abhi K

Five major European nations have called for stablecoin regulations, as fears mount over state sovereignty and consumer protection, according to a Reuters report published on September 11. France, Germany, Italy, the Netherlands and Spain have all as...

tablecoins post triple-digit growth in 2020

11 Sep 2020 1 minute read 0 comments TrinityJc

   In spite of stablecoins posting triple-digit market top development this year, rivalry from ventures sponsored by major money related and tech partnerships is not too far off.  The flexibly of the Coinbase-upheld stablecoin USD Coin (USDC) has d...

Celo -The Cellphone Cryptocurrency Payment System

10 Sep 2020 7 minute read 19 comments The Part Time Economist

Celo is a crypto-currency that wants to make financial services available to anyone that has a mobile phone. One of Celo’s main goals is to make it possible to send cryptocurrency to anyone simply by using their cell phone number. In theory, this wou...

Canadian Stablecoin Platform Comparison

8 Sep 2020 1 minute read 4 comments cryptoforcanadians

In one of my previous posts, I wrote about how PayTrie's a convenient way to buy stablecoins in Canada. As there are other platforms in Canada that I have learned about that also sell stablecoins since publishing that post, I thought I'd write a new...