Founder of BitMEX Is Proposing a Bitcoin-based Stablecoin

As an AI language model, I do not have access to current news and events beyond my knowledge cut-off date of September 2021. However, I can provide some general information about stablecoins and their relationship to Bitcoin.

Stablecoins are a type of cryptocurrency that is designed to maintain a stable value relative to an underlying asset, such as the US dollar or another fiat currency. This is achieved through a range of mechanisms, including over-collateralization, algorithmic stabilizers, and market-based mechanisms such as arbitrage.

One potential benefit of a Bitcoin-based stablecoin is that it could allow for greater use of Bitcoin in everyday transactions, while also providing users with the stability and predictability of a fiat currency. This could potentially help to overcome some of the volatility and price fluctuations that have historically been associated with Bitcoin and other cryptocurrencies.

However, creating a stablecoin based on Bitcoin could also present some challenges, as Bitcoin’s price is itself volatile and subject to fluctuations in the broader cryptocurrency market. Additionally, the creation of a Bitcoin-based stablecoin could potentially undermine the core value proposition of Bitcoin as a decentralized, trustless, and censorship-resistant form of digital currency.

Overall, the proposal to create a Bitcoin-based stablecoin is an interesting development in the cryptocurrency space, and it will be interesting to see how it evolves and whether it gains traction among users and investors. As with any cryptocurrency investment, it is important to conduct thorough research and due diligence before investing in a Bitcoin-based stablecoin or any other cryptocurrency.

Stablecoin Is Free from USD Banking Services

Stablecoins are a type of cryptocurrency that are designed to maintain a stable value relative to an underlying asset, such as the US dollar or another fiat currency. While some stablecoins are backed by traditional banking services, such as deposits held in a bank account, there are also other types of stablecoins that are not dependent on such services.

One example of a stablecoin that is not dependent on traditional banking services is Dai, which is a stablecoin that is pegged to the value of the US dollar but is backed by cryptocurrency collateral rather than traditional currency reserves. Dai is created through a decentralized lending platform called MakerDAO, which allows users to borrow Dai by putting up cryptocurrency collateral as collateral. This collateral is then held in a smart contract and used to maintain the stability of the Dai peg.

Another example of a stablecoin that is not dependent on traditional banking services is TerraUSD (UST), which is a stablecoin that is pegged to the US dollar but is collateralized by a basket of cryptocurrencies rather than fiat currency reserves. UST is created through a decentralized lending and borrowing platform called Anchor, which uses a system of algorithmic stabilizers to maintain the stability of the UST peg.

Overall, stablecoins can be created and maintained in a variety of ways, and some stablecoins may be free from traditional banking services. However, it is important to conduct thorough research and due diligence before investing in any stablecoin or other cryptocurrency, as they can be highly volatile and subject to a range of risks and uncertainties.