Coinbase, the popular cryptocurrency exchange, is reportedly exploring the possibility of introducing a new type of stablecoin that is tied to inflation.
This unique stablecoin, called a “flatcoin”, would be pegged to the cost of living rather than the US dollar, like most stablecoins on the market.
In doing so, Coinbase hopes to counteract the negative effects of central banks’ financial policies and provide users with a more stable investment option in these uncertain times.
The company explained in a statement that it is now more important than ever to create an inflation-pegged stablecoin, given the recent challenges faced by the global banking system.
Flatcoins would be tied to inflation data and consumer price index, allowing for greater stability and reliability in the long term.
While other projects have attempted similar concepts, such as the Nuon flatcoin and the Frax Price Index stablecoin, there have been few real-world tests of this kind of asset so far.
Coinbase is open to exploring other ideas that bridge the gap between fiat-pegged stablecoins and volatile cryptocurrencies, with the goal of providing investors with a broader range of stable investment options.
Overall, Coinbase’s exploration of flatcoins represents an exciting new development in the world of stablecoins and provides a potentially game-changing option for investors seeking greater stability in their investments.