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.


After 9 Months of Near Silence, Facebook Offers a Huge Update on Libra Project

17 Apr 2020 1 minute read 26 comments Abhi K

On April 16, the co-creator and board member of Facebook’s Libra project, David Marcus, has published a series of tweets that gives an update on the project, which has endured months of silence and doubt since its original announcement.  Saying that...

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...

Time to Ditch Tether?

16 Apr 2020 4 minute read 6 comments Tomadachi

A number of crypto news sites and fellow Publish0x writers have already highlighted the recent statement of intent by the big player in the world of  financial regulators to establish "tools of control" for global stablecoins (GSCs) such as Tether (...

Will XRP become A Global Stablecoin?

15 Apr 2020 1 minute read 0 comments valuevision

XRP - The new gold standard?   All over the world governments create their own CBDC's and XRP will bridge these currencies to enable nearly instant cross-border payments. Currently, a bank has to prefund the corresponding bank abroad in their local c...

Central Banks May Prohibit Fully Decentralized Stablecoin Systems

15 Apr 2020 1 minute read 0 comments Abhi K

The Financial Stability Board, an influential international body that is composed of all G20 members, on April 14 has published a lengthy document on regulating stablecoins that provides some insight into the regulatory body’s approach to the asset c...

Curate Bitcoin 04/14/2020 by dobobs

15 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...

The G20 issues crypto recommendations

14 Apr 2020 1 minute read 0 comments DZCRYPTO

The Financial Stability Board (FSB) issued a series of recommendations requiring the member countries of the Group of 20 a unified approach to regulate stablecoins .  According to the G20 financial oversight body, countries need to modernize their r...

Breaking Dollar Dominance - Chapter 2: The Swiss Franc - OG Safe Haven Queen

13 Apr 2020 7 minute read 2 comments Jtodd

So, What Exactly is a Safe Haven?   According to Investopedia, A safe haven is an investment that is expected to retain or increase in value during times of market turbulence. Safe havens are sought by investors to limit their exposure to losses in t...

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...

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...