Author: MOS Finance Team – Leah
According to the Investopedia website, a stablecoin is a digital token pegged to a reserve asset in order to provide a certain level of stability.
In the ever-changing development of digital tokens, it is difficult to predict their future volatility. Some, such as Bitcoin, can vary by thousands of dollars in a single day. Other cryptocurrencies have already disappeared, such as OneCoin and BitConnect. Hence people seek to gain some stability by trying to tie the cryptocurrency to other assets.
Gold is the reserve asset of central banks and the US dollar is a reserve currency for much of the world. Therefore, it is desirable to peg the value of digital tokens to the price of gold or the U.S.dollar.
A cryptocurrency whose value is either coupled to gold or the US dollar is already common. However, H-Dollar and H-Coin of the New Federal State of China are the first digital currency to be coupled to both gold and USD at the same time. Along with the full development of the G-ecosystem, H-coins will certainly be well accepted by more and more people.
Edited by: Hetangyuese
Proofread by: Hetangyuese
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