Opinion
There are two big questions on everyone’s lips now: What exactly is Facebook’s Diem, and what it will offer its potential 2 billion users?
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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.
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Abracadabra.Money enables users to provide collateral via interest-bearing tokens and borrow the Magic Internet Money stablecoin against their holdings.
9798 - NewsTether fires back against report it is using reserves for investments and making crypto-backed loans
"If those loans fail, even a small percentage of them, one Tether would become worth less than $1," said Bloomberg reporter Zeke Faux.
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The number of hackathons is going up as the crypto industry is fighting for talent.
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Rune Christensen believes MakerDAO’s collateral should be mobilized to capital into sustainable investments.
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The partnership will enable MoneyGram customers to fund and withdraw from their accounts using the USDC stablecoin at physical branches.
8930 - Altcoin Watch
The successful launch of the long-awaited Columbus-5 upgrade is just one of the factors in LUNA’s ascension to a new record high.
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Circle has published filings revealing it is cooperating with a subpoena from the SEC that it received in July.
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“[Crypto] is a trend that has barely started — money is the easiest application and the Bitcoin use case started there,” said Bank of America.
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As House Democrats grapple over the infrastructure bill, the Biden administration and Federal Reserve eye stablecoin regulation.
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The United States government appears keen to tame the rapidly growing stablecoin market, according to reports.
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Visa’s new blockchain interoperability project is designed to serve as a “network of blockchain networks.”
13667 - Altcoin Watch
Coti’s price rallied to a new high after a series of partnerships, exchange listings and a pivot toward NFTs lure new investors to the project.
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One of the world’s largest point-of-sale providers has partnered with BitPay to allow U.S.-based merchants to accept crypto payments
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Anclap expects to launch two more Stellar-based stablecoins for Chile and Colombia later this year.
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