Stablecoin - News, Opinion & Analysis

Stablecoin

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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.


The unstoppable rise of Stablecoins

14 hours ago 5 minute read 5 comments Paolo Kolla

The cryptocurrency space has seen a huge expansion of stablecoins in the past year. Almost 60 different projects are currently live and many more are being created. This week, the value of assets for all stablecoins surpassed $10 billion for the firs...

EURS and their wallet analysis. Finally a Tether USD worth opponent? | Testing Wallets #1

25 May 2020 3 minute read 8 comments CryptoMartin

During the last days I've been searching about stablecoins and I figured out that most of them are based and backed up by the US Dollar, basically, in my opinion, because is the most important currency in the world, so having it, without having in mi...

Financial Technologist Koosha Azim Brings Stablecoin Education to Africa

25 May 2020 2 minute read 0 comments SEG

Koosha Azim is a Silicon Valley-born innovator exploring the emerging space of stablecoins. Mentored by Alyze Sam, he has begun operating financial education initiatives in Africa. From his home in the San Francisco Bay Area, Azim has lectured univer...

Best Place for Canadians to Buy and Sell Stablecoins in 2020...

23 May 2020 4 minute read 13 comments walkonwayvs

Introduction Things are a little different in Canada in terms of cryptocurrency. Mainly the conversion rate between CAD/USD is pretty shitty almost always and because of that there are fewer options to be able to transact with Canadian Dollars. Eh. B...

Will Stable Coins Be Affected By The Declining Value Of The US Dollar?

23 May 2020 2 minute read 0 comments PassionCryptodotcom

Stablecoins have grown by leaps and bounds since the start of 2020. As previously reported, stablecoins are increasing their market capitalization despite negative interest rates and many see a bright future for dollar-backed stablecoins in the years...

Uphold launched new stable coin centre!!

22 May 2020 1 minute read 0 comments Hem123

Being a user of brave browser i have an uphold account and so today i got an email from uphold about theire announcement of launching theire new stablecoin  centre.  Overview of Uphold Uphold is a  cloud base universal asset exchange service rather t...

Tether's USDT has surpassed XRP By market capitilization.

21 May 2020 1 minute read 0 comments Blockchain Times

Stablecoin Tether has just replaced XRP as the third-largest cryptocurrency and has become the second-largest altcoin behind Ethereum's Ether (ETH). Tether's USDT has just surpassed XRP in market capitalization, becoming the third-biggest cryptocurre...

Libra Association with a new general counselor: a former finCEN Director!

20 May 2020 1 minute read 0 comments alberdioni8406

The Libra Association backed by the Giant Media Company  Facebook hired former Director of Financial Crimes Enforcement Network (finCEN) as new General counsel. The new "heavyweight" from Libra will be the first General Counsel from the Association a...

All you need to know about DAI and Stablecoin

19 May 2020 3 minute read 0 comments AncaElena

First of all, WHAT IS A STABLECOIN? Stablecoins are just as the name implies. They are a cryptocurrency that has stability as their primary feature. They are pegged to the value of another asset and will hold the same value with that asset through ti...

Why CBDC's Can Help Crypto Adoptions

18 May 2020 2 minute read 0 comments reedyzzx

Central Bank Digital Currencies or CBDCs have become the subject of discussion since years ago. The idea of changing the form of money to become digital has been debated over and over again although recently it became much more appealing to the high...