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.


China is ready to launch the new national blockchain network, the infrastructure will be operational from next April

10 Jan 2020 1 minute read 0 comments Roberto D.

Six months after the start of the first tests, China confirms that the new national blockchain network will be fully functional and operational starting next April; the initiative aims to create a state infrastructure that meets the needs of all thos...

The Most Important Events To Watch In 2020!!!

5 Jan 2020 4 minute read 2 comments andreaskanel

  New year - but also a new decade - to see what exciting developments we expect to see in 2020. 2019 was a rich event-year. We have seen the birth of new alliances, new crypto products and a plethora of blockchain protocols that have evolved and exp...

New legislation on cryptography in China in force since yesterday is preparatory to the launch of the digital yuan

2 Jan 2020 2 minute read 0 comments Roberto D.

As reported by the China Money Network, an English-language financial news site, the new legislation that regulates the world of cryptography in China has become fully operational since yesterday; the law had been approved on 26th October by the perm...

South Korea's new opening to cryptocurrencies, a central bank study on a state crypto starts

30 Dec 2019 1 minute read 0 comments Roberto D.

That South Korea is one of the most friendly countries towards cryptocurrencies is widely known, so it is not surprising that the country's central bank has decided to set up a task force that will deal with assessing the possibility of issuing a CBD...

The Russian central bank is testing the stablecoins within the perimeter provided by a specific sandbox

30 Dec 2019 2 minute read 0 comments Roberto D.

There is nothing to do, being behind the institutions of the various countries when it comes to cryptocurrencies is practically impossible; in fact, almost all governments go from timid openings to total closure within a few weeks, only to return to...

USD Coin?

29 Dec 2019 4 minute read 2 comments trevorbalthrop

Why hello there! USD Coin Almost out of nowhere like living in a cave hibernating. New coins have emerged within the last year or so. Many of them come in the form of stablecoins! Except there is something strange happening behind the scenes that i...

Paxos Standard (PAX) vs Gemini USD (GUSD)

17 Dec 2019 1 minute read 0 comments zoplaska

While researching different stablecoins, I came across two stablecoins Paxos Standard (PAX) and Gemini USD (GUSD).  The purpose of the post is to look into similarity and differences between these two. Similarities: Both stablecoins are built by comp...

The Digital Currency Race Heats Up

14 Dec 2019 2 minute read 6 comments tabul8tor

Facebook’s Libra Photo by Alex Haney on Unsplash On 18 June 2019, Facebook, the world’s largest social network, announced a cryptocurrency called Libra which would be a stablecoin backed by a basket of currencies weighted towards the U.S. dollar. Li...

Sweden signs a partnership with Accenture for the launch of a state cryptocurrency

14 Dec 2019 1 minute read 0 comments Roberto D.

The news was given yesterday by Reuters, according to reports by the news agency the Swedish central bank is planning to launch a pilot platform preparatory to the issuance of a digital currency that should take the name of e-krona; the platform will...

The new ECB governor demonstrates its openness to cryptocurrencies and stablecoin

13 Dec 2019 1 minute read 0 comments Roberto D.

When a few months ago Christine Lagarde was appointed to replace Mario Draghi at the ECB, we pointed out that this appointment would entail a radical change in the approach of the EU institutions to the blochchain technology; in the following weeks a...