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All about stablecoins, the dollar-backed cryptocurrencies

Although it carries high levels of popularity, bitcoin is no longer alone in the ecosystem of digital currencies. Other types of assets grouped under the name of “stablecoins” were added to the so-called altcoins, which –like Tether and TrueCoin- are backed by the US dollar to try to reduce their volatility.

This type of cryptocurrency always it has a relatively stable price and its fluctuation is slight. Almost all stablecoins have some kind of collateral and then manage their offering to influence the market and stabilize it.

Stablecoins have gained traction by offering the best of both worlds: instant processing and security and / or privacy of cryptocurrency payments and the stable valuation without volatility of fiat currencies, ”according to a report from consulting firm PWC.

Some green or ecological stablecoins have the advantage that they rely on what is called “natural capital”, that is to say that its price rises as the environmental problem worsens.

New digital currencies for an economy of information technology.  REUTERS / Dado Ruvic

New digital currencies for an economy of information technology. REUTERS / Dado Ruvic

“The trend is not only focused on the accentuation of the environmental problem but on the desire to want to remedy it with reliable instruments,” explains Juan Núñez, head of GBM coin, a new ecological cryptocurrency.

In the case of GBM coin, each user who acquires a token will be able to collaborate with the preservation of one m2 of native biosphere, of a total of one million hectares in ten countries of the world.

GBM can be considered a stablecoin since is backed by natural capitalAlthough its value may fluctuate, it was not conceived as a highly volatile currency.

The first issue of GBM coin is already on sale for only US $ 1.09 per unit and It is associated with one m2 of the Paraná jungle in Misiones, where the promoters of the initiative began at the end of last year the process of comprehensive reconversion of a field of 25,000 hectares.

In Argentina there has been a big step for the agri-food industry with the tokenization of soyThis means the beginning of new opportunities for those who wish to save, invest or transact with cryptosoja (SOYA) which is backed by soybeans.

Other proposals such as Facebook and its partners in announcing, two years ago, the launch of the stablecoin Libra (currently Diem, and still pending circulation), whose objective is to bring these digital currencies closer to the domestic economy.

With very low risk

Cryptocurrencies, in general, are an alternative that grows as form of saving and investment versus traditional fiat currencies and centralized banking entities, which present a growing disbelief in recent times.

The stablecoin are ideal for those occasional investors, who are intimidated by the volatility of traditional crypto. The attributes of value protection, low price fluctuation and support in the real physical world, the ecological aspect has to be added.

“The appeal of a backed currency is exactly the haven and security for more conservative investors looking to achieve sustained return value. The most audacious investor seeks high profitability in the short term by following the variables and at the same time taking high risks ”, GBM reviews.


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