What is the Stablecoin (which country proposed the Stablecoin)

08/05/2023 10:05 • Metaverse & Beyond • 54 views

What is Stablecoin and what is Stablecoin? Stablecoin, as its name implies, is a legal currency (i.e. Bitcoin) of one or a class of Cryptocurrency that is 1:1 anchored to legal assets. In reality, the exchange between legal currency and digital form is irreversible. When people put cash or other things into an account, it can automatically be converted into equivalent US dollars and used by its holders to pay interest. And this process is also completed through algorithms. At this time, someone needs to buy some Stablecoin, such as Tether, which can be redeemed at any time, borrowed funds at a fixed interest rate, and bank reserve If we say USDT is a type of value storage, its operating mechanism is completely transparent, without any collateral, and there is a certain risk of market price fluctuations. So for some stable tokens in the market, they all have high demand. Why issue Stablecoin? Stability refers to linking the price of something to the quantity of another item, and then generating new supply based on changes in supply and demand to ensure that the exchange rate remains unchanged. At present, the two types of Stablecoin that have appeared in the market are the emerging stable tokens represented by DAI and the non mainstream stable tokens represented by PAX

Which country proposed the Stablecoin

In the past few weeks, the discussion about the Stablecoin has become increasingly high. Some people believe that which country proposed the Stablecoin? Or has the technology developed? If these issues are not resolved, they will become the focus of industry attention

According to the data of the Blockchain and CryptoAsset Review, in 2017, the total supply of Stablecoin was 5.24 billion dollars. However, since 2017, the term ‘stability’ has been a major area of controversy. However, it is unclear whether this new payment method will replace the US dollar or other Fiat money. (AMBcrypto). It is said that the Swedish authorities hope to introduce a digital version similar to “Euro” (EURS), British pound and Japanese yen – a new form of Electronic cash system issued by its private company to promote cross-border trade and settlement However, it is worth noting that both R3 and Coinbase refused to provide specific details regarding the launch of Tether. Therefore, the R2 team must find a suitable method to implement this initiative. Although they can choose to use Ripple network for development work, most jurisdictions are not ready to create their own Stablecoin because they need to comply with regulatory requirements, because they do not have such functions. If a country’s reserves are insufficient to support their stability or serve as a means of storing value, it should be considered converting them into fiat currency to avoid any potential challenges, “said Fran ç ois Villeroyde Galhau, Vice President of the French Central Bank. (Decrypt)

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What is the Stablecoin (which country proposed the Stablecoin)

Which country proposed the Stablecoin

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