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what is stable coin? - Printable Version

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what is stable coin? - aedanhall - 09-15-2021

Stablecoins are a form of cryptocurrency that are relatively new and are gaining popularity as they solve the problem of volatility. Stablecoins are typically cryptocurrencies that are backed by a traditional fiat currency such as the U.S. dollar. 

The valuations of stablecoins, as the name indicates, are stable and therefore supposed to be less volatile than other digital currencies. Stablecoins are also be used for cross-border payments and are a “neutral” position for cryptocurrency traders so they don’t have to trade into a fiat currency when they exit a cryptocurrency position. 

BankX is the fi¬rst cryptocurrency that pays interest for minting a stablecoin, called XSD. You earn interest for the entire time that it is in circulation. XSD is backed by Ethereum and the BankX Token. The system is fully decentralized and trustless. Interest is paid to you, in the form of BankX Tokens, when you pay back the stablecoin to redeem your collateral.