KB Topic Stablecoin

Stablecoins are cryptocurrencies which are pegged to some other fiat currency. If the number of stablecoins is a fixed multiple of the amount of fiat currency held in reserves, then the value of this cryptocurrency will remain proportional to that of its reference currency.

Traditionally, most stablecoins use a 1:1 ratio to the US Dollar. The 1:1 ratio is not obligatory. A cryptocurrency which represents 1 cent of a dollar could be pegged on a 1:100 ratio, for example. The main trait all stablecoins share is their constant value against some major world currency. If the reserves are matched precisely against the amount of stablecoins, then these cryptocurrencies can be thought of a representation of fiat money on the blockchain.

Based on Cryptocurrency Knowledge Base Topic stablecoin
ELI5 What's a stablecoin
Since the beginning of cryptocurrency history, most crypto assets have been known to experience enormous oscillations against the US Dollar (or some other legacy currency). This has scared many people away from cryptocurrencies. When bonds or FED rates oscillate half a percent, there's enormous repercussions in the worldwide markets. Bitcoin, on the other hand, can oscillate 20 to 30% within hours and it's considered business as usual. Stablecoins Cryptocurrency developers and investors decided i...

Japan's Second Biggest Bank Launching Yen-Pegged Stablecoin in March 2019 | CryptoSlate
Mizuho Bank, Japan's second largest financial institution, is readying the infrastructure for a stablecoin launch in March 2019, as reported by Asia Nikkei Review. The coin is aimed at increasing low-cost cross-border transfers and remittances. Mizuho plans to promote cashless payments in Japan by deploying its offering across retail stores for feeless-transactions, unlike traditional credit cards. In addition, all remittances will be conducted via the unnamed coin for zero charges. The firm is reportedly in discussion with over 60 regional banks to support liquidity for the stablecoin. Initially termed the J-Coin project, the Mizuho effort was started in 2017 by group chairman Yasuhiro Sato in partnership with two Japanese megabanks, regional banks, and Japan Post Bank. If all goes according to plan, the project shall mark the first instance of a stablecoin used by financial corporations, banks, and retail shops.

CryptoRuble: How Stable Could Russian National Stablecoin Be
Details of Russia's national stablecoin have surfaced. Details of Russia's national stablecoin have surfaced. Why CryptoRuble might not turn out stable On November 7, the chairman of Russia's State Duma Committee on Financial Markets announced details of the CryptoRuble, a long-discussed government cryptocurrency project.   Specifically, the official said that a state-backed stablecoin would be a complete equivalent to the Russian fiat ruble, but in a digital space. Russian authorities have now ended up with this concept after years of contradicting statements, and still, a ruble-pegged stablecoin might not turn out stable in the end.

Stablecoin Purchases Surged Amid Wednesday's Crypto Market Drop
The crypto market took a turn for the worse on Wednesday when it lost nearly $30 billion in total market capitalization but not every asset struggled to find buyers. In fact, certain stablecoins like USD-C, TUSD and DAI each witnessed a more than 200 percent increase in 24-hour trading volume amid the broader market sell-off as traders flocked to what they may have perceived to be safer alternatives in an effort to escape market volatility. The surge in stablecoin trading volume isn't exactly surprising, given their main use case is to provide cryptocurrency users with the ability to convert volatile crypto positions into anti-fragile or stable alternatives.

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