New digital currency sets the world talking

Adoption of stablecoins proves popular. Different forms of currency have been used over the ages — such as seashells, wampum and metal coins — and in more recent times, bank notes made from paper and plastic are in wide circulation.

Nowadays, the digital era is set to redefine the features of money and the ways in which it is used.

Almost overnight, the world has started to talk about stablecoins, a new form of digital currency fully backed or collateralized by a country’s fiat currency — money that the government declares to be legal tender.

Stablecoins can also be viewed as an electronic version of fiat money, or e-money, as defined by the International Monetary Fund. Different from their predecessor bitcoin, which first appeared a decade ago, their value is linked to a pool of assets that can ensure a stable price for these “coins”.

Experts said that compared with bitcoin and other cryptocurrencies, stablecoins may be more capable of acting as a means of payment and for storing value.

New digital currency sets the world talking
Loading spinner

Leave a Reply

Scroll to top