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.


Libra has no future, facebook should support third-party projects, so a report from the eToro blockchain research unit

29 Nov 2019 1 minute read 0 comments Roberto D.

The report published today by Finextra, the research unit of eToro, puts forward a series of substantial criticisms of books, the cryptocurrency made in facebook, strongly desired by Zuckerberg, who has so suddenly ignited the controversy of media an...

Afghanistan continues to invest in the blockchain, now it is the turn of applications in the health sector

28 Nov 2019 1 minute read 1 comment Roberto D.

Afghanistan, in collaboration with the United Nations, several months ago, has launched a program aimed at developing blockchain solutions for land registration, aimed at favoring harmonious urban development; now, as reported by the local news agenc...

More and more countries are working on state cryptocurrencies, now it's Ghana's turn

28 Nov 2019 1 minute read 0 comments Roberto D.

The news began circulating on November 26, following the intervention of Ernest Addison (current governor of the Ghanaian central bank) who, during the twenty-third national banking conference, declared that Ghana is about to launch a pilot program a...

Data Reveals F2Pool Mining Pool Giant Connection To PegNet - Hashrate Goes Parabolic

27 Nov 2019 2 minute read 1 comment DoYouEvenCrypto

So it’s been a while since I’ve posted, sorry about that, but at least I have some VERY good news to talk about - PegNet is growing incredibly and it looks like major mining pool F2Pool is also getting into mining PEG.  A lot has happened in the past...

8 Beginner Questions About Stablecoins Answered

26 Nov 2019 3 minute read 4 comments The Part Time Economist

In response to one of my recent articles, a reader asked for a more in-depth explanation of what stablecoins are and how they work. As I thought about this question, I realized that sometimes it is good go get back to basics and that many people may...

The Stablecoin Solution - Why Stablecoins are the Key To Crypto Adoption

24 Nov 2019 5 minute read 9 comments The Part Time Economist

One of the very first things that I learned in my Monetary Theory courses was that money is a “stable medium of exchange” that functions as a “store of value”. In other words, money allows us to receive payment for something today, hold the money, an...

USDTZ, an on-chain-Tezos stable coin, with optional revenue and on-chain-lending.

21 Nov 2019 4 minute read 0 comments Allen Walters

USDtez (USDTZ) is an on-chain-Tezos stable coin. 1 USDTZ will always match the value of 1USD.  USDTZ should provide liquidity for the Tezos financial ecosystem.  USDTZ is over-collaterized and backed by both Tezos (XTZ) and fiat. USDTZ can give you r...

What is Sai? (SAI) [A Comprehensive Guide to SAI]

19 Nov 2019 7 minute read 6 comments Mr.CryptoWiki

I’ve talked about all sorts of projects in the past few weeks. The big names like Bitcoin, Ethereum and Ripple, and many others. I’ve stressed the significance of certain niches and trends, such as cloud computing and the emergence of exchange tokens...

Multi-Collateral DAI - What does it mean for Raise?

18 Nov 2019 1 minute read 2 comments RobSpitz

Today (November 18th 2019), MakerDAO is launching its new version of DAI - Multi-Collateral DAI (MCD). After hitting their $100 million market-cap, MakerDAO needed a solution to continue their growth and minimise risk so as a result, MCD has launched...

Multi-Collateral Dai Starts Monday - Here's What You Need to Know

14 Nov 2019 5 minute read 4 comments The Part Time Economist

On the 18th of November, MakerDAO will be launching the new and improved Multi-Collateral DAI. For those of you who aren't familiar with Dai, it is one of the leading stable coins and is "minted" when users lock ETH into a collateralized debt positio...