There is currently massive excitement around stable coins and their application. With stable coins having the potential of performing the solutions that cryptocurrency was originally purposed with – an alternative store of value and medium of exchange.
In the case of most stable coins pegged to a single currency this is inherently ironic, these coins remain reliant on the central bank of said pegged currency and are still vulnerable to FX risk and inflation. So, in fact these coins values are not stable at all they are just as stable as the fiat they are pegged to- not quite the true manifest of crypto by taking the power back from the central banks through decentralization.
While these coins do have a large range of use-cases and will always have prominence in crypto they are not quite the world changers they are billed, by some, as.
However, some stable coins do deserve the hype. For instance, AAA Reserve coin is not pegged to any single currency. It is backed by a basket of the 6 largest currencies as per the tri-annual report from the Bank of international settlements and AAA rated fixed income investments making it the first real value stable coin, where inflation from the G10 countries over the past 10 years is tracked (plus a premium) and over the medium to long term the nominal value of the coin is manipulated via investment return to perform at (and slightly above) inflation, further detail can be located on the white papers on
www.aaareserve.com.
This will enable people to insulate themselves from the effects of inflation of their national currencies and in doing so gives it incomparable potential benefits.
Currently, around 2 billion people are living in countries that have inflation higher than 5% and/ or have political instability. Individuals living in these countries are seeing the money they have put aside to plan for their and their children’s future eaten away by inflation or taken away by untrusted counterparties.
Without a reliable currency and somewhere safe for people to store their savings, it is very difficult for people to provide for their families. Very often, individuals are suffering the consequences of the actions of others. AAA can enable people to have access to a stable, safe, transparent currency that can help them plan for their future and provide for their family.
The AAA reserve coin is live now and ready to both bridge the gap between fiat and cryptos and provide solutions to the most needy or anyone who doesn't like inflation!
