Facebook Libra, Stable coins and Asure Network
Products based on Stable cryptocurrencies have many advantages over the same products that can only be bought for fiat currencies. Among such advantages are global access and usage, price stability, favorable capital, self-regulation, and self-management. Social security would benefit greatly from a widespread, stable cryptocurrency or alternative medium of exchange.
Bitcoin / other cryptocurrencies have not yet prevailed as currency. One of the reasons is that there is no or too little market distribution. Other possible reasons include volatility, long transaction costs and transaction times. With the help of stable currencies and better access, this becomes possible.
Actually, to represent fiat currencies or other assets 1 to 1, they should guarantee stability that is otherwise hardly given in the crypto-ecosystem. This is mainly due to the volatility of the cryptocurrencies. Stable coins should provide a safe haven here as their price closely follows the prices of the fiat currencies like USD.
Generally, even classic insurance services are dependent on the stability of a currency used in the system. One of the goals of the Asure Network is to create a system that can provide insurance services without being vulnerable to the volatility of the price. As a possible solution to overcome the problem is to use a Stable coin for certain services in the future.
USDT (Tether)
The cryptocurrency tether (USDT) is also referred to as the stable coin, as it is covered by an asset. The company behind Tether is Tether Limited. According to the company, every tether created is backed by a deposited US dollar. Concerning this claim, doubts have been raised in the past.
(see https://blockgeeks.com/guides/what-is-tether/).
DAI (MakerDAO)
MakerDAO has launched its Stablecoin DAI on the Ethereum platform and created its own Smart Contract. The goal of the team was to create a stable cryptocurrency that differs from already established projects and follows a different path. Therefore, there are two fundamentally different approaches to the Stablecoin in comparison with Tether: first, the Stablecoin is not supported by Fiat reserves on a bank but should be self-balancing and on the other hand, the regulatory control was not by word or third-party checks but is transparent at any time on the blockchain.
Libra (Facebook)
Facebook plans to release a stable coin in 2020. Similar to MakerDAO (MKR, DAI), there are two tokens to regulate, others to use, and similar to USDT, a real currency will be deposited, not just US dollars only, but also other fiat currencies. This makes it exciting because it ensures its own stability. We are very excited about the implications of this shift and assume that there will be more acceptance and more regulation in the field, providing even more clarity on how technology can be used properly for more benefit to the society to achieve.
Stablecoin like USDT, DAI, etc. create a stable cryptocurrency and solve an important problem. Nevertheless, the use of stable coins as a generally valid means of payment is far away.
Libra is so exciting because it wants to gain access to 1.7 billion people, providing a generally accepted cryptocurrency.
Stable Coin (Governments)
There are political efforts and ideas to offer a stable coin from the government side as well, we find this step very exciting and open our minds to support different varieties for better usability and user acceptance.
About Asure Network
Asure Network is designed to run social security systems on blockchain technology, playing a major role in both pay and currency stability, with the ability to progressively evolve over time demonstrating that it will not be long before it does it is thus possible to use decentralized systems which even fill up better than the centralized ones, because automation and transparency mean that many sources of error can be excluded.
Conclusion
All of these stable coins offer some certainty regarding the short-term fluctuations that exist in the cryptographic currency. We plan to allow agnostic cryptocurrency support in the Asure Network so that the benefit of social security benefits people and is easy to use from mobile to social security.
In addition, Libra pushes all governments and financial institutions into action. If banks do not act now and go into real competition with Libra they have lost.
With Facebook’s recent push with Libra, we are in a good mood to have a faster-than-expected, generally accepted and widespread, stable digital currency that can be used in smart contracts and, hence, in all financial products.
References
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