RATE Group | Dai seeks to change ‘stablecoin’ game By Reuters
69019
post-template-default,single,single-post,postid-69019,single-format-standard,ajax_fade,page_not_loaded,,qode_grid_1300,side_area_uncovered_from_content,footer_responsive_adv,qode-content-sidebar-responsive,qode-child-theme-ver-1.0.0,qode-theme-ver-13.3,qode-theme-bridge,wpb-js-composer js-comp-ver-7.9,vc_responsive
 

Dai seeks to change ‘stablecoin’ game By Reuters

18 Nov Dai seeks to change ‘stablecoin’ game By Reuters

Posted at 08:43h in Cryptocurrency News by

[ad_1]

© Reuters. FILE PHOTO: An electric board showing exchange rate between South Korean Won and Bitcoin at a cryptocurrencies exchange in Seoul

By Tom Wilson

LONDON (Reuters) – Some are backed by dollars. Others by gold. But this “stablecoin” isn’t tied to any major asset – it’s backed by another cryptocurrency.

Stablecoins, such as Facebook’s (O:) Libra, are a new breed of cryptocurrencies that aim to escape the wild price swings that make bitcoin unworkable for commerce. They base their value on more stable underlying assets, typically traditional currencies or commodities.

But Dai, in a major divergence from others, uses a volatile digital currency – ethereum – to maintain a steady value.

This might appear to defy common sense, but its advocates say the way it works – with “smart contracts,” blockchain-based covenants with terms set in code – means Dai will always keep a stable value while offering transparency.

Stablecoins like Libra…

[ad_2]

Source link

Tags:
, , , , ,