Fiat-Backed Stablecoins ⁠— Attempt to Take the Best of Both Worlds

[Obliv0n 333]

I generally have a problem with the fiat support of these currencies, I do not deny the fact that they are too useful especially when the market goes in a bearish run since it works as a unit of value and offers stability, but for example of Theter ( USDT) little is known in terms of support, as they claim they have the money but no one has seen it.

[joemcgwa 3227]

On 10/7/2019 at 9:32 AM, starwill said:

Fiat backed stablecoins are here to stay, but what makes them so stable and desires?

Stablecoins attempt to be fiat currencies among cryptos. They can be a medium of exchange, a means of storing value and a unit of account. Unlike other digital coins, stablecoins are tied to some kind of stable asset — such as the United States dollar, euro or even gold. Linking to such assets confirms the coin’s stability and mitigating the volatility of cryptocurrencies.

With this type of a token, an equal amount of fiat currency should be stored by the issuing company to back the value of the token. The owner of this token should be able to exchange it for cash at any time

 

That's right stable coins should be invested like that by the financial sector with the investment of fiat compared to the totally desired amount of stable coins, because if stable coins also will be created as much as you want like crypto currencies, this would kill the crypto market.

[guatazoo 7150]

On 1/9/2021 at 6:10 PM, joemcgwa said:

That's right stable coins should be invested like that by the financial sector with the investment of fiat compared to the totally desired amount of stable coins, because if stable coins also will be created as much as you want like crypto currencies, this would kill the crypto market.

Maybe it would be good for every country to be created their own locay stable coins which will be competiting to cryptocurrencies world for the economic reasons. 

[Dang3r 103]

I really do not trust stablecoins as a store of value, since in general the currencies are usually backed by phantom money, as is the case with Theter and its current SEC lawsuit where they require that you test the money that Supposedly backs USDT, at this point it condoned more on TRX than on a stablecoin

[selfmade 7]

I could call this a conspiracy of the governments towards the cryptocurrency world, after so many years of failing to ban crypto they are finally found a way to fight back.

[AL SHAIMON 1293]

Stable coins are fixed and there are no new stable coin comes to the market. But you mention a coins name which act like stable coin. But I think this coin is not a stable coin. It is acting like stable coin only for some period.

[guatazoo 7150]

2 hours ago, AL SHAIMON said:

Stable coins are fixed and there are no new stable coin comes to the market. But you mention a coins name which act like stable coin. But I think this coin is not a stable coin. It is acting like stable coin only for some period.

But its good if there will no any stable coins to be created in order to make those available stable coins to be worth such as USDT coin is most ranked stable coin. 

[AL SHAIMON 1293]

8 hours ago, guatazoo said:

But its good if there will no any stable coins to be created in order to make those available stable coins to be worth such as USDT coin is most ranked stable coin. 

You are right mate. USDT coin is one of the best stable coin in crypto market. I think this is a substitute of USD. However sometimes this coin's price drop a little. But most of the time it fixed. In coinmarketcap USDT in top rank. This is a very good news for traders.

[joemcgwa 3227]

15 hours ago, guatazoo said:

But its good if there will no any stable coins to be created in order to make those available stable coins to be worth such as USDT coin is most ranked stable coin. 

You are right, if there will have so much stable coins created that's means people will have no choice of which stable coins to use so that's they will be using any kind of stable coins that's will make them to be worthless because they are so many.

[chambers 58]

Fiat backed cryptocurrencies are gradually coming into the spotlight, but looking at it from a legislative angle I think it's better to continue using cryptocurrencies that are backed with technology rather than fiat

[Mfe 109]

This is not true and can not be, where is crypto that fiat will be marked best? Anyways they have their own way of judging the whole stuff. But I will go for crypto rather than fiat.

[selfmade 7]

8 minutes ago, Mfe said:

This is not true and can not be, where is crypto that fiat will be marked best? Anyways they have their own way of judging the whole stuff. But I will go for crypto rather than fiat.

It is true brother what is said is true but not how you understood it, there are cryptocurrency in which many governments are trying to create that would be backed by currency of  particular country and the price would be the same. But let's not dig too far, Even USDT is fiat backed, it is US Dollar backed.

[selfmade 7]

On 1/16/2021 at 1:44 PM, Uni12 said:

This type of currency is fixed and linked to the financial resources of the paper to make many countries think the same way and introduce their own currency into their own blockchain. Thus, it benefits from using blockchain, reduces fraud, prevents fraud, and reduces its significant financial burden compared to its Fiat currency.

I think that normal cryptocurrencies are good and stablecoins are good and useful too, but these coins that are stable and backed by national currencies to represent those coins in a digital form are not real coins, coins such as digital yuan and they tend to destroy the crypto world from inside out, what do you think.

[Raqeebzy 6456]

On 10/7/2019 at 7:32 AM, starwill said:

Fiat backed stablecoins are here to stay, but what makes them so stable and desires?

They are no doubt the strongest and also the most used. USDT, USDC and BUSD are top stable coins and more stronger because they are backed by USD.

Commodity backed stable coins like Digix Gold (DXG) (backed by gold) are also the next big stable currency.

[chambers 58]

Somehow, I support the invention of such currencies because even though their will be government interferences in the operation of such currencies, the overall security and liquidity will be much more than that of ordinary cryptocurrencies 

[joemcgwa 3227]

On 1/18/2021 at 7:39 PM, selfmade said:

I think that normal cryptocurrencies are good and stablecoins are good and useful too, but these coins that are stable and backed by national currencies to represent those coins in a digital form are not real coins, coins such as digital yuan and they tend to destroy the crypto world from inside out, what do you think.

Is there have digital Yuan which used as stable coin in the crypto, if that's really this are the big economic war against USA and China. But for any means digital Yuan cannot win the race with USDT because USDT are the top performing stable coins among all stable coins available.

[yonkii 3205]

On 10/7/2019 at 9:32 AM, starwill said:

an equal amount of fiat currency should be stored by the issuing company to back the value of the token

This makes stablecoins being stable. But we also read that some of them may not have this backing in deposits or other assets and maybe they are just having this value established, coming from trust, similar to the trust we give to government issued fiat. In either case stable coins require trust and are very close to fiat.

[guatazoo 7150]

20 hours ago, yonkii said:

This makes stablecoins being stable. But we also read that some of them may not have this backing in deposits or other assets and maybe they are just having this value established, coming from trust, similar to the trust we give to government issued fiat. In either case stable coins require trust and are very close to fiat.

Sure stable currencies need trust, because if they were not trusted, then someone can create stable coins without storing the fiat currencies equal to stable coins he have created, so that's can create $10 billons which 1 coin worth $1, so that's means if he will succeed to sell all coins, he will become richest person in a short period without legal investment. 

[teebasas 3018]

I don't trust stablecoins as a store of value because most currencies are backed by phantom money, as is the case with Theter and its current SEC lawsuit requiring that you verify the money that supposedly backs USDT; at this stage, it's more appropriate to trade TRX than stablecoins.

[Lataro 5]

I do not know why the owners of stable currencies are trying to convert their digital currency into monetry currency, knowing full well that the future is for digital currencies. Tjis type of currency link to fixed and paper finacial assets has made many countries think the some way