Coinbase, one of the leading cryptocurrency exchanges, is exploring the concept of “flatcoins,” which its CEO, Brian Armstrong, believes could be the next evolution of stablecoins. In a recent interview with Yahoo Finance, Armstrong shared his thoughts on flatcoins, stating that they are “the next iteration of stablecoins.”
Flatcoins, as described by Armstrong, would be decentralized stablecoins that could potentially be linked to the Consumer Price Index (CPI) or purchasing power. This linkage would make them more responsive to changes in the real-world economy, especially in terms of inflation.
The idea of flatcoins isn’t entirely new, and it was likely coined by former Coinbase CTO Balaji Srinivasan. Srinivasan proposed the concept as a way to address inflationary concerns associated with stablecoins pegged to fiat currencies. Instead of pegging their value directly to a single fiat currency, flatcoins would be linked to an on-chain basket of goods, providing a more stable store of value.
Armstrong believes that flatcoins could offer an improved form of money within the cryptocurrency space compared to traditional cryptocurrencies and existing stablecoins. He sees them as a potential solution to the challenges people face with cryptocurrencies like Bitcoin and the inflation risks associated with many stablecoins.
Brian Armstrong Discusses the Potential of ‘Flatcoins’ as Next-Generation Stablecoins
This exploration into flatcoins aligns with Coinbase’s interest in staying at the forefront of cryptocurrency innovation. While the company has not officially started developing flatcoins, Armstrong mentioned that there are teams within Coinbase exploring this concept.
In addition to flatcoins, Armstrong discussed various other ideas related to the effective use of blockchain technology, including on-chain reputation systems, on-chain advertising, on-chain capital creation, crypto job marketplaces, and privacy solutions for second-layer blockchains.
As the cryptocurrency industry continues to evolve, it’s not uncommon for major players like Coinbase to explore innovative ideas and concepts that could shape the future of digital assets and their use cases. Flatcoins represent one such concept that could have a significant impact on the stablecoin ecosystem and provide users with a more reliable store of value.