Stablecoin

A representative of Russia’s Central Bank recently denounced private stablecoins in favor of a possible digital ruble. He claimed that the former is unsafe because its owners do not control the assets backing their value. CBDC VS Stablecoins As reported by local media on Monday, the unnamed representative argued that stablecoins are not in fact “stable” in value. Stablecoins are cryptocurrencies that attempt to circumvent industry volatility by pegging their value to relatively stable, real-world assets. They typically rely on…

Under the DFS’ regulatory guidance, stablecoin issuers will have to fully back their tokens with reserve assets like U.S Treasury bills, notes, and bonds. The New York State Department of Financial Services (DFS) has announced new regulatory guidance for the issuance of stablecoins pegged to the U.S. dollar in the state, a press release unveiled. These guidelines will apply to all DFS-regulated stablecoin issuers. At the moment, these include Gemini Trust Company, Paxos Trust Company, and GMO-Z.com Trust Company. The…

Terra co-founder Do Kwon became an industry hero when he promised to buy $10 billion of Bitcoin back in March. Now, he’s become crypto public enemy number one. Two months after the announcement, his blockchain’s dollar-based stablecoin, TerraUSD (UST), has depegged to just $0.15. Meanwhile, Terra’s governance token LUNA has collapsed to absolute zero, destroying investors who HODL’d through its collapse. Kwon and the Luna Foundation Guard fought to defend the peg by selling their Bitcoin reserves to pump UST’s…

DEUS Finance's algorithmic stablecoin DEI appears to be going the same route as the ravaged Terra USD (UST). DEI is the third stablecoin to depeg from the $1 mark in the past 14 days.  DEI Drops to All-Time Low Price charts from CoinGecko show that the token failed to maintain its dollar peg starting late Sunday. Earlier today, DEI plummeted to an all-time low of 52 cents. The stablecoin has undergone a slight recovery and is hovering at $0.65 at…

On Monday, the Luna Foundation Guard (LFG) temporarily emptied its entire Bitcoin wallet of 42,530.82 BTC. Due to crypto market volatility, the foundation says it's trying to preserve TerraUSD (UST)’s peg to the dollar. According to on-chain data, the LFG’s Bitcoin wallet sent out all of its Bitcoin at 14:34 EST, only to recover 28,205 BTC just 2 hours later. Terra co-founder Do Kwon explained yesterday that the Guard voted to deploy $1.5 billion from its reserves to maintain UST’s…

Rishi Sunak, Chancellor in the UK, has ordered the Royal Mint to create a government-backed NFT for trading. The Chancellor expects the NFTs by the Summer as the government examines new possibilities to use blockchain.  What does the Government wish to achieve with this new political action? And what can the impact of the news be on the NFT and blockchain market? More Information About the Project One of the hottest topics in blockchain technology right now is the use…

1inch – a popular decentralized exchange aggregator – has now launched “Earn”, an investment product offering APY for liquidity providers.  The first pool features a USDC/USDT stablecoin pair. This is meant to provide reliable yield at a time of intense volatility in the crypto market, while preventing slippage. An Extra-Efficient AMM According to a press release shared with CryptoAdventure, Earn – previously “Trading Strategies” – is a hyper-efficient AMM pool. It’s design is similar to Uniswap V3’s range orders, which…

Pat Toomey – a crypto-supportive Republican senator – recently spoke at a congressional hearing discussing stablecoins and their risks. He proposed that stablecoin issuers should operate under three different regulatory models – including under bank charter. This comes following the stablecoin report’s release last month, which recommended that chartered banks only issue them. Three Models For Stablecoin Issuers On Tuesday, the hearing titled “Stablecoins: How Do They Work, How Are They Used, and What Are Their Risks?” happened. While there,…

It looks like Meta is bringing the world of crypto to social media apps beyond just Facebook. The company recently announced that Novi – its native digital currency wallet – has been integrated into WhatsApp's messaging service. This comes shortly after David Marcus, head of Novi, announced plans to leave the project at the end of the month. Crypto Payments Through WhatsApp Stephane Kasriel – incoming head of Novi – revealed the wallet’s WhatsApp compatibility in a tweet on Wednesday.…