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.


In the libra association there is practically only Facebook

23 Jan 2020 2 minute read 0 comments Roberto D.

Libra, the stablecoin project strongly desired by Zuckerberg, presented with great pomp not even a year ago with the promise that it would be launched by the first half of 2020, capable of arousing panic in governments around the world and of taking...

Binance gets U.S patient for binance stable coin

19 Sep 2019 1 minute read 2 comments CryptoArgha

Binance recently launched their own stable coin Busd by partnerinh with another fiat backed stable currency name paxos Binance submitted a request for a payment patient to operate in the united states of America BUSD is backed by multiple stable cryp...

Larger market trends shift in favor of cryptocurrencies

14 Jan 2020 1 minute read 0 comments TheCryptokeeper

A shift in market trends appears to indicate this year will see a lot of investments moved into cryptocurrency One of the heads of the IMF, Christine Lagarde, indicated that much greater further interest is being taken by by the banking world in cryp...

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...

A Possible way to use cryptocurrency offline ( NFC, Crypto cards etc)

4 Oct 2020 3 minute read 0 comments Blindworld

   This is something that struck my mind while reading a comment. Actually, the technology exists. We talked about stablecoins, whose value does not fluctuate, and Defi a project the offers a cryptocurrency alternative for all financial services. Now...

Stablecoins Vs. Fiat Money: Who shall Dominate More? Details!

24 Oct 2019 4 minute read 3 comments GoCryptoWise

Since the inception of the crypto space in 2009, Fiat money has had a direct competitor to its operations and authority as a means of payment. From around 2013, when cryptocurrencies started to gain traction and get recognition, many people have posi...

Curate Bitcoin 04/09/2020 by dobobs

10 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 News R...

Can Stablecoins Solve DEX Problems?

21 Oct 2019 1 minute read 0 comments Yasin

American entrepreneur and loyal cryptocurrency defender John McAfee said that stablecoins are crucial to the adoption of the decentralized exchange (DEX). McAfee made this statement on October 20 with a Tweet. McAfee's video on Twitter has begun wit...

Adapting to the new Syndicate Participation Rules (Crypto.com)

24 Aug 2020 3 minute read 0 comments bengy

  So, for better or worse, the rules for participating in the discounted (usually 50% off) Syndicate events on the Crypto.com Exchange has changed in the past month or so. Now, in addition to a minimum of 5000 staked CRO (on the exchange and not t...

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...