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.


HBD Savings - Collect, compound and repeat | June 2024

21 Jun 2024 2 minute read 0 comments Behiver

Another month has passed and while my yields from HBD savings compounded I got to the date when I can claim them. While the Hive price seems to have gone down the drain for a bit, seeing the HBD stablecoin numbers growing up simply gives me peace of...

Exclusive Interview with the Co-Founders of AURU.M and QELT: STO Meets Gold Reserves

18 Jun 2024 4 minute read 1 comment normbond

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18 Jun 2024 4 minute read 0 comments Mike Ermolaev

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Europe increases requirements for stablecoins

14 Jun 2024 2 minute read 0 comments Talha.Khalid

Given the expectation that has arisen in the European stablecoin market due to the implementation of the Regulation for the Cryptoasset Market (MiCA) as of July 1, the European Banking Authority (EBA) published a set of guidelines aimed at the sector...

Ripple Launches RLUSD: Its Stablecoin to Conquer the $150 Billion Market

14 Jun 2024 1 minute read 0 comments KMatt

A new player enters the world of stablecoins: Ripple has revealed the name of its cryptocurrency still in the US dollar, namely RLUSD (Real USD or Ripple USD). Presented during the XRP Ledger Apex, the move represents an important step for the compan...

China has tried to lead the world in the development of CBDC but faces a basic flaw

8 Jun 2024 2 minute read 4 comments Cje95

Last month the House of Representatives voted to prohibit the issuance of a CBDC by the Federal Reserve and the U.S. Treasury Department. However, many Democrats were quick to jump to the defense of CBDC and tried to highlight how they were a huge "t...

5 Stablecoins That Will Compete for the Place Left by USDT in Europe

7 Jun 2024 3 minute read 0 comments Talha.Khalid

With the imminent entry into force of the Regulation for the Cryptoasset Market (MiCA), a series of rules are being implemented for the stablecoin ecosystem, which seek to promote currencies anchored to the euro, above those backed by dollars.  The r...

MiCA Stablecoin Rules Implementation Announcement

6 Jun 2024 5 minute read 0 comments player7o

This announcement affects only users in the the European Economic Area (EEA) Fellow Binancians, On 2024-06-30 (UTC+3), the new MiCA stablecoin rules will come into effect across the European Economic Area (EEA). This will be a first step entering the...

For how long will you monitor the cryptocurrency price fluctuations?

5 Jun 2024 1 minute read 4 comments Debesh Choudhury

How long would you watch the price fluctuation of cryptocurrencies? Look at the currency price graph of BitcoinCash, aka BCH. Screenshot Source   Is there any way to stabilize the price? Stablecoins are such options that you can give a stable price...

DAI on the rise... or is it?

5 Jun 2024 3 minute read 1 comment Michael @ CryptoEQ

You are reading an excerpt from our free but shortened abridged report! While still packed with incredible research and data, for just $40/month you can upgrade to our FULL library of 60+ reports (including this one) and complete industry-leading ana...