Standard cryptocurrencies are highly volatile with the 20-30 percent fluctuations in a matter of hours. There is a list of stablecoins that can help remove this unpredictability and the market can sustain against the moving values. These stablecoins are ‘stable’ because they are pegged by fiat currency like USD, EUR, JPY and CNY. Sometimes they are even backed by oil or gold.
To overcome appreciating and depreciating values, Cobinhood has recently added four stablecoins on its platform which will be available from November 9, 2018, on the exchange – the Gemini Dollar (GUSD), Paxos Standard Standard Token (PAX), MakerDao (DAI) and TrueUSD (TUSD). Being the world’s first zero-fee and high-frequency cryptocurrency trading platform, Cobinhood has begun the adoption to become a real traditional financial platform.
The list of stablecoins added on Cobinhood have distinct features. The Gemini Dollar (GUSD) is an ERC20 token strictly pegged 1:1 with US dollar and backed by New York State Department of Financial Services regulation. It can be traded on Cobinhood platform with USDT and BTC. Paxos Standard Token (PAX), issued by Paxos Trust Company, is built on Ethereum blockchain and completely collateralized on 1:1 with US dollar. PAX will be traded on Cobinhood with USDT and BTC.
MakerDao (DAI) is not backed by any centralized authority but pegged by US dollar. To stabilize its value, it uses smart contract platform, incentivized external actors, CDPs and autonomous feedback mechanisms. On Cobinhood, trading pairs available are DAI/USDT and DAI/ETH. As for TrueUSD (TUSD), it is completely collateralized by USD and held in banks and professional trust firms. On Cobinhood, it is traded in pair with USDT and BTC, as stated on Cision PR Newswire.
While this list of stablecoins exists on an exchange platform, Russia is also moving towards bringing their own crypto backed by ruble. In 2017, President Vladimir Putin had announced to launch state-back cryptocurrency but said it was too early to discuss crypto ruble due to lack of backing for digital assets.
Now, crypto ruble may become fully functional digital version of Russia’s fiat currency once Duma passes the laws for cryptocurrency industry regulation as stated by Anatoliy Aksakov, chair of the State Duma Committee on Financial Markets.
Crypto ruble is the same ruble that is completely backed by ruble on 1:1 basis. It is only the encrypted form which can be used to purchase blockchain-based products, as reported on Cryptovest. It is believed that digital ruble will support the needs of the digital economy participants once blockchain becomes an integral part of Russian economy.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]