Stablecoin

The Government of Nayib Bukele plans to create a national cryptocurrency currently referenced as the Colon dollar. According to El Faro newspaper, which cites videos of private meetings between cryptocurrency investors, officials, and two of the president's brothers, the currency would be tied to the value of a fiat currency like the dollar. The development, which is targeted soon, would restore an essential element of monetary policy that the country lost when it adopted the U.S. Dollar in 2001: issuing…

The cryptocurrency market has endured multiple selloffs recently, leading to stablecoin inflows into exchanges dropping to the lowest level since October of last year. The market saw another massive pullback on June 21, which saw approximately $1 billion in crypto positions liquidated in 24 hours. The bloodbath led to BTC dipping below the $33K as about $572M worth of coins was liquidated. This market plunge has led to speculations that the crypto market could be headed into another bear market.…

You all remember the stablecoins hype back in 2020? You would have mistaken it for a new concept in the crypto space, but stablecoins have been here for a while. Tether, one of the earliest stablecoins, was launched back in 2015. The stablecoin concept is an idea aimed at addressing the volatility of cryptocurrencies. So basically, stablecoins are cryptocurrencies pegged to a conventional asset. Formerly known as Libra, Diem is a stablecoin co-championed by the social network giant Facebook. The…

Facebook-backed Diem might launch this year based on a recent report. The report, citing a source undisclosed, said the Diem Association plans to launch a small pilot with a single "stablecoin," pegged to the US dollar, later this year. The association has indicated that it has relocated its significant activities to the United States from Switzerland. It has also withdrawn its application to the Swiss Financial Regulator for payments. CNBC also said that if Diem's pilot is introduced this year,…

The European Central Bank (ECB) calls on EU lawmakers to confer it with total control over stablecoin issuance within the region. Reuters reports today that the ECB, via a legal opinion issued on February 19, requested to be given the exclusive right to determine whether a stablecoin will launch within its jurisdiction.  The ECB noted that if stablecoins are not strictly supervised, it could negatively affect the eurozone’s existing payment system.   “Where an asset-reference arrangement is tantamount to a payment…

A stablecoin is a form of cryptocurrency whose value is fixed by pegging them to another asset's price, usually a FIAT currency held in bank accounts. Stablecoins can be pegged to various kinds of support; for example, USD Coin (USDC), Paxos (PAX), and TrueUSD (TUSD) are tokens backed by a 1:1 ratio of money held in the bank accounts. By pegging to real-world assets such as the US dollar, these coins avoid price volatility synonymous with the cryptocurrency trading markets.…

More people in Latin America have shown interest in Dai over the previous several months due to the economic troubles aggravated by the coronavirus pandemic. The local news outlet iProUP reported that the trading volume of MakerDAO’s stablecoins was four times during quarantine in Argentina, as it became $20 million daily from $5 million. This shows that Latin America is moving to the Safety of Dollar-Pegged Stablecoins because of the absolute debt and hyperinflation. Hence, the people chose to deal with…

The cryptocurrency futures market has been experiencing a shakeup since the cryptocurrency market crash which happened on March 12. The market crash led to the decision by BitMEX to lose some of its futures marketplace to Binance, says the cryptocurrency intelligence company Coin Metrics. Reports have it that BitMEX experienced two distributed denial-of-service (DDoS) attacks during the market crash last month. The attacks led to late processing of market orders and 156 accounts sustained losses. Since then, BitMex has lost market volume…

Digital currencies pegged to traditional assets such as fiat are known as stablecoins. Based on their design, they are capable of holding a steady value and provide cryptocurrency traders an easy means of escaping the high volatility of the cryptocurrency markets. On April 17, the CEO of blockchain database startup Messari tweeted about the value of stablecoins on exchanges. Ryan Selkis said the massive sum of cryptocurrency capital are on the sidelines but ready to move into BTC, ETH, XRP and…