Stablecoins need to maintain reliable peg to promote industry’s growth and acceptance – The National

Stablecoins need to maintain reliable peg to promote industry’s growth and acceptance – The National

The stablecoin market needs to ensure its peg to actual assets is maintained in a rigid and reliable manner in order to support its growth and promote more acceptance, as investors and even governments look to the digital asset as a safer way to trade in the highly-volatile cryptocurrency market.

Stablecoins – a type of cryptocurrency that is pegged to a fiat currency – tend to be less volatile unlike Bitcoin, whose wild swings are influenced by simple factors such as tweets, most notably from Tesla chief executive Elon Musk.

"Not anyone can mint a stablecoin out of the air. You can have a stablecoin but if you don't maintain its peg on the actual decentralised exchanges where it matters, you're kind of stuck of something that's worth nothing," Pablo Peillard, protocol lead developer and architect at QiDao, said at the Fantom Developers Conference in Abu Dhabi on Tuesday.