Why link a basket of fiat currencies to a stablecoin?

«The only workable stablecoins are those that are composed of a simple (weighted) average of assets, more commonly called a “basket” or simply, “diversification of your portfolio» — Bob McElrath “On The (in)Stability of Stablecoins” 2018

GLOBCOIN’s platform will make currency baskets available to the general public. The first currency basket consists of 15 fiat currencies (from the largest 15 economies) and 5% gold, and it’s linked to a digital token called GLX. The result is a cryptocurrency proven to be more stable than the Swiss Franc.

There are solid economic reasons to adopt a basket of fiat currencies. In fact, we have already been offering this solution to private clients for many years, mostly large institutions and wealthy family offices. It’s a stable index that helps to protect wealth and purchasing power against the downturns of the global economy. You can read all about the benefits of the GLX here.

But thanks to the creation of the GLX cryptocurrency, the basket can be democratized and accessible to any individual, not only large institutions. Our technological approach enables a wide range of uses of our currency basket, which would not be possible without crypto-tokens. You can read all about why we needed the Blockchain to make this possible in this article.

What does this mean for you? You can use the GLX to:

• “Park” your funds with a stable, global value: Take the stability of 15 national currencies (both developed and emerging) and combine it with the freedom of cryptocurrencies and the Blockchain technology.
• Pay or exchange in a global context. Even though the main use case of the GLX is as store of value, it has a secondary use as a medium of exchange. Even better, with GLOBCOIN, the stored value is automatically secured by construction, while still exchangeable if needed.

The GLOBCOIN platform offers simplicity, good liquidity and modest transaction costs.

Beyond the technical achievement, allowing any individual to benefit from a professional basket of fiat currencies is a step towards better financial inclusion for all.

*Written by: Eva Contreras — Globcoin CMO