The Strengths & Weaknesses of Stablecoins 👩🏫 An analysis of popular stability mechanisms for stablecoins, examining a few different models and analyzing essential factors of successful stablecoins. The basis of each type has fundamentally different underlying principles, and they contain very different levels of risk. This is the third post on a series explaining stablecoins by MakerDAO, check out Part 1 and Part 2.
This paper proposes improvements to the stable coin concept, by reducing or removing requirements for trust, and removing the paramount sources of risk, through the use of a decentralized natural commodity reserve, distributed to users. -via Medium
During a recent conference in South Korea, Binance CEO Changpeng Zhao responded to questions about the company’s relationship with controversial stablecoin Tether. He acknowledged that “concern is always there,” according to regional reporting. Binance is one of the largest holders of Tether.
Tether hired Freeh, Sporkin & Sullivan (FSS), the Washington, D.C., law firm of former FBI director Louis Freeh, to conduct an investigation of its compliance and transparency, including a check of its bank balances — and publicly posted the confidential report from FSS and its findings in June.
In a report titled (Un)Steady as She Goes, the investment bank expects cryptocurrency markets to “further [decline] in the future given our view that these cryptocurrencies do not fulfill any of the three traditional roles of currency: they are neither a medium of exchange, nor a unit of measurement, nor a store of value.”
- via GS
“Bitcoin is still too unstable and limited to become a viable means of payment or a mainstream asset class,” UBS strategist Joni Teves wrote in a note to clients Thursday. “Owing to its lack of price stability, bitcoin falls short of criteria that need to be satisfied to be considered money.”
An easy and rewarding read on stablecoins covering: Use cases, models, pegs, revenue models, and regulatory backdrop.This is the 5th chapter on The Blockchain Economy serialised book, check out the rest here.
Along with Intercontinental Exchange, Microsoft and BCG, among others, is working to launch a new company called Bakkt that will enable consumers and institutions to buy, sell, store and spend cryptocurrencies on the global network by November. The platform with convert bitcoin and other cryptocoins into U.S. dollars that can be used to buy a Cold Foam Cascara Cold Brew, Matcha Lemonade or anything else at Starbucks.
To celebrate the 50th anniversary of the Big Mac, McDonald’s today unveiled the MacCoin, a limited edition global currency* backed by the internationally iconic Big Mac that fans across the world can get their hands on starting August 2 to share, collect or redeem.
Etch officially launched the ////Pier protocol this week with a conference in London covering everything from the logo design (orignally, it was going to be a doughnut emoji), the token model, community angle and more. Stable.Report also had a surprise appearance!