Hello again and welcome to another deep dive into a new coin for this week’s edition of Wealth Mastery. This week we’ll be looking at a new development in stablecoins, where there are said to be many drawbacks and inherent instability of algorithmic stablecoins. A new project called e-Money is looking to bring a more efficient and liquid type of currency-backed stablecoins into the blockchain market.
Introduction
E-Money is an electronic payment system and fully-regulated storage of value proposition operating in the financial services industry. The company vision is to create a level playing field, providing equal access to transparent financial services, on a global scale, while reducing cost. E-Money intends to release a range of currency-backed stablecoins in a manner that is fair and transparent, accessible for all, near-zero fees, instant settlements, and immediate finality. E-Money is not designed to act as a wholesale replacement for the existing financial system, but can instead be thought of as the layer two solution for traditional finance. For merchants, e-Money offers a payment processor that is easy to use, with fewer intermediaries that allow for greater levels of transparency and low fees. Since payments are settled immediately, merchants can see that e-Money supports the ongoing liquidity of their business. The concept and technology for e-Money are being developed by Block Finance A/S, a Danish Fintech company that are innovating new technologies to bridge traditional financial services together with distributed ledger technology. Built on the Cosmos Network, e-Money allows for a suite of inter-blockchain communication through the Cosmos Hub. With plans to integrate with Ethereum and Avalanche with-in the first half of 2021. Unlike most existing stablecoins which aim to maintain a static 1:1 peg with their underlying assets, the value of e-Money’s currency-backed tokens continually shifts in line with the interest accrued on the reserve assets. This means that holders enjoy the interest accrued on their assets while they sit securely in a wallet. With the future e-Money blockchain supporting instant payments at scale and including a DEX for easy conversion between currencies.
Algorithmic stablecoins can be inherently unstable and inefficient, relying on over-collateralization to protect the system. At a larger scale, algorithmic stablecoins struggle for immediate liquidity. The cryptocurrency industry is currently dominated by two types of stablecoin; collateralized stablecoins and algorithmic stablecoins. Despite recent and rapid growth in the market due to instability in both the cryptocurrency and traditional markets, both types of stablecoins have weaknesses and pain points. But, The currency-backed stablecoins that e-Money will use are a more novel form of stablecoin and entirely unique to the e-Money platform. The currency-backed stablecoins created by e-Money are more of an updated iteration on the concept of collateralized stablecoins. But, a big difference here is that e-Money’s currency-backed stablecoins are interest-bearing, and have more in common with a standard bank deposit than hold-in-your-hand fiat. This new approach also gives e-Money’s currency-backed stablecoins more resilience in times of economic uncertainty. Built for the issuance of a range of interest-bearing…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
