“Trusted” Tokens? – Underpinning The Reliability of EURST’s Stablecoin

The popularity of stablecoins is increasingly on the rise. Recently, as Bitcoin hit new records, the market value of stablecoins witnessed a 10x increase. Facebook has announced its own stablecoin, and even VISA has become the first major payments network to settle transactions in the American dollar-backed stablecoin USDC. So what’s to love about stablecoins? The main reason is, they lack the volatility of regular cryptocurrencies. As they’re pegged to a more consistent reserve of value such as fiat currency, diamonds or gold, the price of a stablecoin isn’t inclined to fluctuate so dramatically as say, Bitcoin or Ethereum does. “You can have reasonable assurance that in 3 months time, or 6 months time, or 1 week’s time, it’ll still be worth $100. And that’s what was missing in crypto before stablecoins came along.” – Alex Kern, Intelligence Analyst, CB Insights This consistency has created trust in these types of tokens, which have been around since 2014. But before the use of stablecoins can go fully mainstream, Kern warned that issuers and creators of these tokens are going to have to convince their users that their money will be safe with their new technology. When Simone Mazzuca created EURST, or “EURstablecoin”, he had the aim of reducing economic hardship for individuals and businesses within the European Union, whose countries have suffered from a more “flawed economic system” than that of the United States. Tha...