Stablecoin

1,342 Articles 57 Followers

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.


PayPal increases their crypto presence, lunches their own stablecoin PYUSD

15 Aug 2023 4 minute read 9 comments Patch

PayPal has slowly but surely increased its presence in the crypto space. I reported back in June of last year about PayPal having their Bitlicence and slowly starting to roll out the availability to send crypto for their US customers. And then in Nov...

Singapore want to bring crypto businesses to their market with new regulations

15 Aug 2023 1 minute read 0 comments babesugarbunny

On Tuesday, the financial regulatory authority of Singapore announced the regulations governing stablecoins. This now places Singapore among the first jurisdictions to accomplish such regulations.  Stablecoins represent a category of cryptocurrency d...

PayPal's pyUSD vs USDC

14 Aug 2023 6 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 $20/month you can upgrade to our FULL library of 50+ reports (including this one) and complete industry-leading ana...

How to Identify Scam Stablecoins

12 Aug 2023 4 minute read 4 comments MintDice.com

Stablecoins are a useful tool in the monetary world. Oftentimes, they can facilitate cross-border monetary transactions without to associated high fees of using fiat. But just like any other cryptocurrency, there are fake stablecoins parading as real...

The Stablecoin LUSD's Key Differentiator: Decentralization

11 Aug 2023 3 minute read 0 comments Michael @ CryptoEQ

You are reading an excerpt from our free but shortened abridged report! While still packed with incredible research and data, for just $20/month you can upgrade to our FULL library of 50+ reports (including this one) and complete industry-leading ana...

Congress is in Recess but Members are Staying in the News Over Stablecoins

11 Aug 2023 3 minute read 1 comment Cje95

I am not going to lie I thought that August Recess, when both chambers of Congress go back to their districts/states for 6 weeks, would be light on crypto. After all, we ended July with an absolute BANG legislation-wise as four bills passed out of Ho...

Crypto Hate: Haters Gonna Hate

10 Aug 2023 1 minute read 0 comments RomulusNRemus

Haters.  Gonna.  Hate. Yet again, the powers that be in Washington have decided there is another expansive crypto decision that they do not like the sound of or feel is wildly dangerous, unless they in all their wisdom immediately enact (probably) o...

Florence Finance - Real World Assets in Euro

9 Aug 2023 3 minute read 1 comment fmiren

Real World Assets Bringing real-world assets (RWA) onto the blockchain is an emerging trend in DeFi which will have a lasting effect on the field. Bridging RWA with the DeFi industry and tokenizing those RWA will create a value worth trillions of dol...

PayPal launching their own stablecoin - hit or miss?

8 Aug 2023 1 minute read 0 comments babesugarbunny

On Monday we received news that the multinational financial technology company PayPal will be launching their own stablecoin. That means that PayPal is now the first major financial technology firm in the FIAT sphere to embrace digital currencies wit...

PYUSD: Why Paypal and it's new stablecoin are a joke

8 Aug 2023 1 minute read 3 comments Kovichni

Listen to how the ms-media hypes up this centralized joke of a crypto: "PayPal launches first dollar-backed stablecoin from a major U.S. financial institution...The new asset, called PayPal USD (PYUSD), was designed to address the "emerging potential...