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.


Curate Bitcoin 04/16/2020 by dobobs

17 Apr 2020 5 minute read 0 comments dobobs

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of CURATION. Every investment and trading move involves risk. You should conduct your own research when making a decision. Bitcoin Price S...

Curate Bitcoin 03/26/2020 by dobobs

27 Mar 2020 5 minute read 0 comments dobobs

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of CURATION. Every investment and trading move involves risk. You should conduct your own research when making a decision. Bitcoin News R...

Anatomy of a Crypto Fraud: USDZ

12 Apr 2020 2 minute read 0 comments KHubbard

  Have you heard of the latest and greatest stablecoin by the name USDZ? Let’s hope not, but if you have I really hope you didn’t fall victim to this unfortunate crypto scam.  Scams in crypto are nothing new but with stablecoins proving their value...

Carbon Money (Stablecoin) Leaves EOS

28 Jan 2020 3 minute read 0 comments zogintl

OVERVIEW Carbon Money has announced that the project is leaving the stablecoin space. The team said that they would instead be pursuing their “better-performing credit/debit card on-ramp.” Some, particularly those from the EOS community, were caught...

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...

MONEY ON CHAIN PLATFORM - UNLOCKING THE FULL BENEFITS OF DeFi

24 Apr 2020 1 minute read 0 comments depedro

Over the years, the global financial system has further grown weaker, in the passing of days owing to the inefficiencies in its performance. It is slow, centralized, expensive and lacks the necessary tools needed to efficiently cushion the ever-grow...

CBDCs and stablecoins, not similar as digitized fiat is not a ‘DLT based token’

12 May 2020 1 minute read 0 comments PassionCryptodotcom

The central bank digital currency [CBDC] project has been in the talks for quite a long time now. Although Sweden has its e-krona, and the U.S its Fedcoin, they haven’t made much progress in comparison to the likes of China in the field. According to...

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...

Cryptocurrencies in times of financial instability

18 Aug 2019 1 minute read 0 comments beachbummer

We are living in uncertain times caused by various events happening around the world. Protests by a third of a country's populace, hyperinflation, imposition of tariffs for global trade are just some of the recent events. Cryptocurrencies have been s...

BitPay is associated with Binance for incorporated BUSD

29 Apr 2020 1 minute read 0 comments CRYPTOUS

Payment service provider BitPay partnered with Binance to support its stablecoin . BUSD support will be available to BitPay's 2 million customers - individual and commercial - both in their wallet and on their card . The product will be available thr...