Discipline in Currency — Maintaining a Stable Value

Simon Paige
Jun 19 · 19 min read

What is a peg?

Examples of collateralised and non-collateralised pegs.

A collateralised peg

Is the management of supply all that is maintaining the peg?

The stable value of gold

Speculative attack

The Bank of England

Balance sheet of the Bank of England 1694. Source Nathan Berg, Gold the Final Standard p.69.


The relative stability of stablecoin Tether June 2018 to June 2019. USD value left axis, percentage deviation from peg right axis. Source: https://markets.businessinsider.com/currencies/usdt-usd

So what maintains a peg?

The non-collateralised peg

Why has Saver Token taken the non-collateralised peg approach?



Skin in the Game


Stress testing the Saver Token approach

Catastrophic Failure



Counter-party risk

Economic collapse

Which way to maintain a peg?

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