Stablecoins as the Future of Cryptocurrency?
By Market Mad House on ALTCOIN MAGAZINE
The idea of stablecoins as the future of cryptocurrency is hard for me to swallow because of those instruments’ limitations. In particular, most stablecoins work with just one fiat currency: the US dollar.
A stablecoin is a crypto-asset that contains one unit of a fiat currency such as the US dollar. For instance, CarbonUSD (CUSD) is an EOS-based cryptocurrency linked to a blockchain trust that contains a US Dollar. To explain, the trust automatically releases a dollar when you spend a CUSD token.
Similarly, the USD Coin (USDC) contains an Ethereum smart contract that pays $1 when you spend one USDC token. Notably, the USD Coin is the creation of CENTRE a collaboration between Coinbase and crytpo asset-trading giant Circle. Pointedly, American investment banking behemoth Goldman Sachs (NYSE: GS) is backing Circle.
Other stablecoins like USD Coin (USDC), CarbonUSD, and Tether (USDT) are pegged to the US Dollar. To clarify, “pegged” means these altcoins prices’ are supposed to be equal to $1 US Dollar.
