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.
Analysis
Besides securing approval from Swiss regulators, Diem seems likely to face opposition from government regulators in many countries.
Many pieces of the Diem puzzle still missing as launch gets delayed
Osato Avan-Nomayo
2021-02-26T15:04:00+00:00
12704
News
Stablecorp CEO Jean Desgagne said VersaBank's digital currency was intended to provide an alternative to concerns over volatility and security in crypto markets...
Canadian bank plans to launch dollar-backed digital currency 'in the coming months'
Turner Wright
2021-02-24T16:36:56+00:00
25666
News
Polychain Capital has bet on a new decentralized finance exchange protocol looking to boost the adoption of stablecoins in DeFi.
DeFi exchange protocol DFX raises $5M in seed funding led by Polychain Capital
Helen Partz
2021-02-24T14:00:00+00:00
6605
News
The European Central Bank has demanded veto power from lawmakers in the European Union over private stablecoin projects like Diem.
ECB wants final say on the legal status of private stablecoins in the EU
Osato Avan-Nomayo
2021-02-23T13:23:44+00:00
6150
News
The RAI stablecoin will attempt to bring stability to DeFi markets with the long-term goal of becoming a stable global reserve asset not tied to any nation’s cu...
Stablecoin RAI launches, a pure, decentralized alternative for DeFi
Joshua Mapperson
2021-02-19T02:47:09+00:00
12716
Altcoin Watch
Venus protocol becomes the top-ranked DeFi platform on the Binance Smart Chain as XVS price and the total value locked in the platform reach new highs.
Venus (XVS) rallies 900%, TVL hits $3.54B after Binance Smart Chain launch
Jordan Finneseth
2021-02-18T23:50:00+00:00
27065
Analysis
Amid much fanfare, many algorithmic stablecoins have not been stable. Is the problem intractable, or it's the just the algorithms that aren't good enough?
Algorithmic stablecoins aren’t really stable, but can the concept redeem itself?
Andrey Shevchenko
2021-02-18T16:39:26+00:00
17134
News
Fireblocks and First Digital Asset Group have developed a seamless connection to Diem, allowing financial institutions to access the emerging payment network. T...
Diem gets closer to launch as Fireblocks and First introduce new payment infrastructure
Sam Bourgi
2021-02-16T15:25:17+00:00
14148

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