Can every currency of the world be a stablecoin?
The majority of stablecoins are pegged to the US Dollar but there is a demand to create more coins with alternative denominations. That said, a few stablecoins are pegged to currencies like Singapore Dollar, Indonesian Rupiah or Euro. Large currencies have volume, some established form of consistency and track record and tangible backing, and thereby make for a good standard in the virtual currency world, said Raj A Kapoor, Founder, India Blockchain Alliance.
Presented ByDid you Know?
A statue honouring mysterious Bitcoin founder Satoshi Nakamoto was unveiled in a business park near the Danube River in the Hungarian capital Budapest
View Details »Meanwhile, Pratik Gauri, CEO and Founder, 5ire said that it is a false perception that only large currencies can be converted into stablecoins but the US dollar does dominate transactions in foreign currencies. «When it comes to creating stablecoins, it is a matter of how globally acceptable your currency is and if it will be allowed as a legal tender elsewhere,» Gauri explained. The basic notion of a digital currency dates back to more than a quarter of a century. After the failure of early efforts, the emergence of Bitcoin in 2009 dramatically altered the model. It established a decentralized ledger for transaction execution and record-keeping, and created a widely traded currency outside the control of any sovereign monetary authority. Today, thousands of decentralized cryptocurrencies exist.Stablecoins vs CDBCStablecoins are private virtual digital assets (VDA) pegged to a currency whereas Central Bank Digital Currency (CBDC) holds the status of legal tender issued by the central monetary authority and are as good as the currency of a nation.CBDCs and VDA have different
Read more on economictimes.indiatimes.com
