Bitcoin Forum

EURS announced that it's going to have full, regular audits from BDO Malta, part of a top accounting firm. What do you think: are audits crucial for a stablecoin to be credible in the long run?

https://www.coindesk.com/stablecoin-issuer-stasis-promises-full-audits-of-euro-backed-crypto-token (https://www.coindesk.com/stablecoin-issuer-stasis-promises-full-audits-of-euro-backed-crypto-token)

It's a basic thing, if you are claiming that your coin is backed by fiat money you need to prove that what you are claiming is true. If not, how can you expect people to trust in your coin?

Having regular audit is the basic requirement of a stable coin to build trust. Doesn't matter if they are backed up by fiat or any other underlying asset, having an audit by a reputable accounting or law firm as well as by the government agency is very much needed - not just from the regulatory perspective but also from the trust building perspective.

Yep, and the amount of high-trust stablecoins we've had in 2018 alone is legendary.
Goes to show that crypto is here to stay.
Next step - stable prices and institutional support

I'm a big believer in stable coins backed by precious metals, like Gold and Silver, such as in the current Gigzi project. This is way better than backing crypto-assets with fiat money. Because, Gold is more stable in price than fiat, in a global scale..

So, Gigzi has to be one of the best stablecoins in crypto.

of course important. for it is important for stable coins to understand that he will not blow out at one moment. if the stable coin is truly ensured than it is giving trust to users

what the hell are you talking about?????????

The main point of stable coins is audit every half year, otherwise it would be too seductive to own the emission.

The audit will prove if that stable coin is backed by a real dollar and that will build a lot of trust from the speculators to use it. that means if there was no manipulation inside the company. A lot of people are losing their trust in USDT and you can see if that goes below 0.9 last year.

audits can bring in regulations, regulations will bring in restrictions and taxes and government intervention and a lot of other problems. that is one of the reasons why many of them don't go for it but then again the scam ones don't go for it either which is why with centralized coins you are always stuck between a rock and a hard place there is nowhere to go!

Likewise, it's a normal requirement. How can you prove that your stable coin is backed up with real money? through audits.

I think what he meant about the ensured is about the assurance that there's a real backing up of fiat with that stable coin.

Audit of course is good for stablecoin , but at the moment a lot of such coins and I think I do not need so much at the moment I have enough usdc and usdt

As far as I know almost all of the so called Stable coin are supposed to do an independent audit and all of the popular stable coin like Tether and TrueUSD do have a regular and independent audit. It is absolutely needed to confirm that the project has funds to forfeit the value of coin.