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Reasons Why You Should Create A Stablecoin For Your Business

Interest in cryptocurrencies is now growing at a tremendous speed, so many business owners are thinking about creating their currency. This would increase the prestige of the company, as well as improve funding. Stable coin price is tied to a constant value, where the rate fluctuations are low. The security of your assets will be truly top-notch.

What Is Stablecoin And What Are The Main Differences From Other Cryptocurrencies?

What are stable coins? It is a unique type of cryptocurrency that is tied to stocks of conventional currencies or physical goods. This avoids big fluctuations like Bitcoin is experiencing. So, it will help to avoid big expenses due to inflation.

It is quite simple to compare stablecoin with Bitcoin: in the first case, you get a more reliable currency, which can save you from financial losses during inflation, which Bitcoin has been very susceptible to lately. In some types of stablecoins, the value is pegged to major currencies, so the authority can monitor the state of the market. This can be both an advantage and a disadvantage of the financial platform.

There are 4 main types of stable coins:

  • backed by fiat;
  • by crypto;
  • by commodity;
  • by algorithmic ones.

The choice depends on the specific indicators and results that you want to get. Practice shows that cryptocurrencies are considered the most reliable, where precious stones are of central importance. It is really difficult to create them, so many companies are trying to tie them to other cryptos.

Backed By Fiat

The simplest solution would be to create a stable coin that has a reserve of fiat currencies such as the US dollar, Euro, Indian rupees, or some others. All stocks in this case are controlled by the authorities. It is best to give preference to truly reliable currencies that do not experience frequent fluctuations.

As a rule, the value of a cryptocurrency is pegged to the value of fiat 1:1, such as TrueUSD (TUSD) to the US dollar. This allows for increased liquidity and provides non-volatile assets to traders and ordinary users of cryptocurrency. What free-floating tokens like BTC cannot afford.

This method has often been criticized as it cannot be completely decentralized, which is the main feature of cryptocurrencies. It becomes impossible to send various transactions unnoticed by the regulatory authorities.

Backed By Cryptocurrencies

Crypto stable coin is tied to crypto-assets on the Internet, usually Ethereum, Tron, or another token. They are more secure than Bitcoin and are not subject to such dramatic price spikes.

Today, the Dai - MakerDAO project is very popular, which uses a model with two coins: Makercoin (MKR) and Dai (DAI). This moment allows you to avoid control by the authorities, but it is not as stable as other assets.

It is much easier to create a stable coin on such a basis, so this method is quite popular.

Backed By Algorithmic

Best stablecoin is not tied to the value of currencies or items but tries to control its assets using smart contracts. Unsecured stable coins are based on part of the Seigniorage Shares system (Seigniorage is the difference between the value of money and its printing). As a result, such stable coins are completely algorithm-dependent. It controls the volume of supply and the value of the currency.

The use of algorithms allows you to rely only on yourself and practically not become attached to various external factors.

Backed By Commodity

Stablecoins can also be pegged to specific commodities. So, as a rule, precious metals or stones and oil are used for this. The most popular in this regard is gold since its value is one of the most stable and only grows in price. This allows the value of the new cryptocurrency to increase.

Initially, only the richest investors could afford such a stable coin, but today the system is adjusted in such a way that everyone can afford to create such a project. Investments in such currencies are quite common.

Several Reasons Why You Should Create Stablecoins For Your Business

Throughout their existence, cryptocurrencies have proven to be quite useful in the business world. With their help, you can transfer large amounts of money to your foreign partners without paying commission and control from the authorities, safely store money and increase your assets.

Using stablecoin cryptocurrency has the following advantages:

  1. It is one of the most stable currencies in the world;
  2. It offers many options for use (including loans and crediting);
  3. Growing rapidly as a new opportunity for investors;
  4. A decentralized stable coin is a universal currency that allows you to make any transactions;
  5. Combined with blockchain, it can maintain order in the capital market.

If you use the most reliable currency that is practically not subject to fluctuations in price, you have a lot of opportunities.

First of all, you may not follow the fluctuations of currencies, the state of the exchange market. Your assets will be reliably protected from the effects of inflation.

When you create a stable coin for your business, you will be able to do almost any financial transaction, including large international transfers. If you combine them with blockchain technology, then you get the most reliable financial system, which has the highest level of protection, cannot be tracked by third parties and there is no need to spend money on commissions. This will allow you to forget about hacker attacks on your assets, take care of the security of all documentation in the office and solve a number of other problems.

Since your assets in stable coins are as secure as possible, various investors will be more willing to invest in your development. This will help you open new branches, expand the range of services provided and increase production volumes, creating jobs. Large investors trust only reliable businesses.

At the same time, if you are confident in the welfare of your company, you can safely invest in other projects and receive additional dividends from such cooperation. This will help build additional capital and increase the company's prestige.

Stablecoin cryptocurrencies allow you to significantly increase many use cases for finance, including lending. Subsequently, you can get additional profit from interest.

You can control all financial transactions using stablecoin and blockchain. This allows you to connect smart contract technologies. They let you shift some of the responsibilities to computer technology. So, for example, you can renegotiate contracts with regular customers or order raw materials for your production without making an effort. You no longer need to maintain a large staff of workers to perform the tasks that the computer does automatically.

It becomes much easier to maintain documentation if all expenses and financial entries are recorded by computer technology. This prevents fraud and money laundering at any level.

How Can You Develop Your Stable Coin?

Developing your cryptocurrency is a really difficult process that requires a lot of knowledge and skills. When developing them, you must, first of all, understand what currencies, commodities, or algorithms you want to link stablecoin to.

Further work should be entrusted to the professionals of a specialized IT company. The cost of such a development is relatively low, but such a project can pay off within a few months. Responsibilities of IT companies include:

  • Development of a new cryptocurrency;
  • Creation of a strategy for its development and implementation in the work of your company;
  • Development of additional blockchain-based applications to simplify work.

When choosing a company, it is necessary to take into account the recommendations of customers, find out how much it is on the market and how many employees work here. If you turn to professionals, you can expect that all work will be completed only on time and the result will exceed all your expectations

Conclusion

In common, creating your stablecoin for the operation of the business is an excellent solution for those who value stability above all and want their company to develop. If you can successfully select currencies or goods to peg, then your assets will be maximally protected from inflation or fraud.