Input Output Global (IOG) CEO and founder Charles Hoskinson is excited by the idea of algorithmic stablecoins and is confident it could undermine the fiat state monopoly.
Algorithmic Stablecoins Toward the “Gold Standard of the Digital Age”
Charles took to Twitter to share his thoughts on algorithmically backed stablecoins, such as cryptocurrencies pegged to fiat rates, technically designed to outperform cryptocurrencies. smart contract
Unlike traditional “centralized” stablecoins, the balance between collateral volume and stablecoin supply is not controlled by the stablecoin issuer, but instead depends on sophisticated on-chain tools.
This is the idea of an Algorthmic Stablecoin that could eliminate the nation-states that control the issuance and circulation of fiat currencies. The “gold standard” in the digital age
To create good insurance, IOG CEO recommends Bitcoin (BTC) and Cardano (ADA). As deflationary coins, the liquid pool of BTC and ADA will protect stablecoins from losing value.
Cardano (ADA) supports various stablecoin designs
Charles envisions a stablecoin backed by Bitcoin (BTC) and Cardano (ADA) that could replace domestic fiat money.
While some of his followers admired the idea, those who continued to voice their doubts expressed much the same thing about stablecoin TerraUSD (UST) which collapsed in the middle.
As U.Today previously reported, Cardano’s heavily collateralized stablecoin Djed will go live on the mainnet in January 2023, with its own payment system Djed Pay implemented.
source : U.Today
