In the last few years, we’ve seen a surge in the adoption of blockchain technology and cryptocurrency. You can do safe cryptocurrency trading by using the official platform. The decentralized nature of this new industry has led to the creation of volatile cryptocurrencies that can vary in value by hundreds of percentage points. No central bank ensures solvency, so investors are often left holding the bag when companies declare bankruptcy.
Many people are reluctant to invest in cryptocurrency because there is no government backing or regulation, meaning they cannot guarantee the security of their investment. To address these concerns, a team of developers has created a new stablecoin that uses a unique system to guarantee the backing and value of its token:
Blockchain Cryptocurrency Backed with Full Faith and Credit
Imagine a cryptocurrency backed by the full faith and credit of the United States government. This is not an imaginary scenario but one that is happening right now. The cryptocurrency being created is called the USA coin, and it’s backed by the full faith and credit of all 50 states’ governments in addition to their federal government.
The first two states to partner with this initiative were California, which partnered with Ohio to create their currency called Golden State Coin (GSC), and Texas, which partnered with Louisiana on the Texan dollar (T$). There are already over 25 currencies in circulation around North America!
Bitcoin, Ethereum, Ripple, Litecoin, and other popular cryptocurrencies have been used in various criminal activities, including money laundering and tax evasion. Newer cryptocurrencies like Monero or Dash offer additional features that improve upon Bitcoin’s privacy features.
Well, cryptocurrency investors are often left holding the bag when companies declare bankruptcy. No central bank guarantees solvency, so investors are frequently left out in the cold when companies exit under suspicious circumstances. And since there’s no government or regulatory oversight of these transactions, there’s no guarantee that your money will be safe.
It’s important to note that there is currently no FDIC insurance for cryptocurrency exchanges or wallets. Likewise, other financial institutions like credit unions: sometimes offer account-holders partial coverage, but it only applies if you deposit cash into your savings account through an ATM at some point in time (and even then, only up to $250).
So, if you’re planning on investing in crypto assets, whether those assets exist as tokens on a blockchain database or some other method, consider these factors before deciding how much riskier than stocks or bonds you want them to be!
You have probably heard stories about hacked or stolen exchanges; it always happens. But there are steps you can take to protect yourself before making any investment so that if something goes wrong later down the line. Then at least some portion would still be recoverable for future use by either yourself or someone else who inherits them after death.
To address these concerns, a team of developers has created a new stablecoin that uses a unique system to guarantee the backing and value of its token. Unlike other stablecoins backed by nothing but faith, this one is backed by a pool of assets sourced from multiple sources and held in an audited trust. The trust guarantees that each stablecoin is backed by at least $1 worth of fiat currency held at all times by an independent third-party audit firm.
A Quasi-Fiat Currency
A Quasi-Fiat Currency is a digital currency backed by a real-world asset. This means that the asset guarantees the value of the token. The asset can be anything from gold to government bonds.
Utility Tokens
Utility tokens have been adopted enthusiastically, but stablecoins have yet to gain widespread traction. Utility tokens are a form of cryptocurrency used to purchase goods or services. Stablecoins are a form of cryptocurrency pegged to a fiat currency like the dollar or euro to reduce volatility and provide more excellent stability in value.
While more than 1,000 different coins were listed on CoinMarketCap as of this writing, only 37 were ranked as “stable”.
Final Words
The team behind the new stablecoin has taken a bold step in addressing volatility concerns by developing a system that guarantees all tokens are backed with real-world assets. This means that investors can be sure their investment is safe and secure, even when cryptocurrency values fluctuate wildly.
