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 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...

How to Earn Interest on your Cryptocurrencies

11 Dec 2019 1 minute read 3 comments tabul8tor

Maker Dai Savings Rate Image Source: MakerDao From 18 November 2019 onwards, holders of Multi-Collateral Dai, can automatically earn interest on their Dai stablecoin by locking their Dai into a Dai Savings Rate (DSR) contract. The DSR is free and av...

CHRONIC PROBLEMS THAT MAY ARISE AS A RESULT OF THE STABLE COIN ASSET WAR!!!

10 Dec 2019 1 minute read 0 comments kripto sedat

  CHRONIC PROBLEMS THAT MAY ARISE AS A RESULT OF THE STABLE COIN ASSET WAR!!!   WHAT IS STABLECOIN?If you say what is this stablecoin, we can briefly say koin, whose value is fixed before it is released. This value can sometimes be indexed to assets...

Curate Bitcoin 12/06/2019 by dobobs

6 Dec 2019 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 (BTC)...

European Union move Forward with Ban in stablecoins.

6 Dec 2019 1 minute read 0 comments alberdioni8406

European Union is moving forward to ban global stablecoins projects that are willing to operate in the Community. 27 Countries reunited and decided that No stablecoin project can start operations in the European Union until legal, regulatory, and su...

Neutrino is #BestDapp stablecoin protocol in Waves

5 Dec 2019 2 minute read 2 comments Thiago Capuano

There are several stablecoins, we all know many, the most famous and lesser known, each has its own characteristics of ballasting, the Neutrino innovates with its hybrid system. Of many stablecoin there are those that are simply backed into a fiat cu...

No space for the issuance of a CBDC, said the governor of the Japanese central bank

5 Dec 2019 1 minute read 0 comments Roberto D.

Haruhiko Kuroda, governor of the Japanese central bank, during his speech for the 35th anniversary of the FISC (center for financial industry and information systems), underway today, said that there is currently no demand in Japan which justifies th...

An Introduction to Stablecoins and Why They are Important to Your Portfolio

2 Dec 2019 6 minute read 4 comments cam_elica_24

Since their inception, cryptocurrencies have been revolutionary in every sense of the word. For many crypto enthusiasts, crypto is the future of money and will finally break us free from the illusion of control that centralized institutions have sewe...

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...