Stablecoin News

One of the hindrances to mainstream cryptocurrency adoption is price volatility, as these assets are freely traded in the open market without central administrators tasked with maintaining price stability. The anticipation of potential losses and gains has hindered cryptocurrency’s use as a medium of exchange. Stablecoins, however, are cryptocurrencies designed to maintain a stable value over time, making them ideal for commercial transactions. 

The introduction of stablecoins in the cryptocurrency market ushered in a new wave of liquidity, as exchanges were able to provide trading pairs with tokens representing traditional fiat currencies. 

Stablecoin design takes many different forms, each with its own tradeoffs: 

  • Reserve-backed stablecoins: Cryptocurrencies pegged to the value of a fiat currency held in reserve by a company or consortium. E.g., Tether (USDT), USD Coin (USDC) and Paxos Standard (PAX). 
  • Collateralized stablecoins: Tokens backed by other cryptocurrencies that retain a one-to-one value with a fiat currency through over-collateralization to absorb potential volatility of the underlying assets. E.g., Dai and BitUSD. 
  • Algorithmic (seigniorage supply) stablecoins: Rather than using a reserve or collateralization to maintain a stable value, these stablecoins are facilitated through an automated expansion and contraction of the monetary supply, emulating the role of central banks in the fiat economy. E.g., Basis.
How would mass-scale CBDC issuance impact the crypto space?
Decred co-founder explains the possible effects of a CBDC takeover
Benjamin Pirus
Blending real-world assets and DeFi is going to shake this whole market to its core.
Why DeFi plus asset tokenization will take crypto to new heights
Artem Tolkachev
On the frontiers of algorithmic assets, trading isn’t the only activity that will raise your heartrate
Algorithmic asset experiments continue to entice traders & developers
Andrew Thurman
While the OCC's new stablecoin guidance doesn't have an impact on JPM Coin, it could lead to crypto payments if there's demand
JPMorgan Chase execs weigh in on stablecoin regulation, crypto competition
Andrew Thurman
The yuan is not seen as a major currency. Could digitizing it change that? China is breaking new ground in the Shenzhen region and beyond.
China turns up pace on CBDC release, tests infrastructure prior to adoption
Andrew Singer
The United States Federal Reserve needs its own digital currency to protect against a possible overnight proliferation of stablecoin technology, says Fed chairm...
US Fed: CBDC a ‘very high priority’ to combat bad private sector money
Greg Thomson
Market Analysis
Stablecoin inflows into exchanges spiked right as the price of Bitcoin recovered above $38,000, on-chain data shows.
Is a new rally brewing as Bitcoin reclaims $38K and stablecoins 'flooding' exchanges?
Joseph Young
Brooks considers the migration of the financial system onto the internet "inevitable."
An online future for finance is inevitable, says OCC's Brooks
Kollen Post

Follow us on Facebook