The case for crypto stable coins
Is it necessary to link cryptocurrencies to dollars or oil to make them stable?
A new generation of cryptocurrencies has arrived, designed to reduce the price volatility that plagues the likes of bitcoin. Stable coin pioneer Ed Salazar tells swissinfo.ch how they work and what use they can have for society.
In a live interview on Facebook, the CEO of Zurich-based company Forctis told Matthew Allen why crypto stable coins could be particularly useful in countries, such as Argentina, where traditional currencies are struggling.
There are three types of stable coins: those that are pegged to traditional currencies, those that are linked to commodities, such as oil or metals, and those that use algorithms to control supply.
But getting people to accept stable coins as a replacement for the traditional monetary system will be a challenge, says Salazar. The key is understanding how different societies view and use money, he says.
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