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stablecoins

Japan’s Central Bank Wants G7 To Adopt Common Crypto Regulatory Setup

Japan’s Central Bank Wants G7 To Adopt Common Crypto Regulatory Setup

Amid the growing craze for cryptocurrencies, financial watchdogs have shared their concerns about the lack of a well-structured regulatory framework for the industry. Ever since the launch of cryptocurrencies, governments have been skeptical about their involvement in illicit transactions. The latest news in this regard is coming from Japan where the central bank of the country ‘Bank of Japan’ has released a strict warning for G7 nations urging them to adopt a unified regulatory infrastructure for managing and controlling the crypto sphere.

As per the bank officials, there is an urgent need to chalk out a framework for regulating cryptocurrencies in a bid to avoid financial glitches. The present rules are incapable of tracking the involvement of digital assets in skirting economic sanctions. In the recent tussle between Russia and Ukraine, there has been a rise in discussions pertaining to cryptocurrency transactions. The regulators have raised concerns over the use of crypto tokens to skirt economic sanctions. There has been a rising demand for scrutinizing the role of virtual currencies in this regard as the world moves towards a more financially liberal yet complicated ecosystem.

The chief of the Bank of Japan’s payment systems unit, Kazushige Kamiyama stated that the use of stablecoins makes it convenient to draft an individual global payment settlement infrastructure. This allows countries to deceive the traditional and legal payment channels that use the U.S Dollar, Japanese Yen, or Euro for payment execution purposes. The spearhead added that a regulatory structure is very important for the G7 nations to manage cryptocurrencies and other virtual assets. The current regulations do not completely take into account these requirements related to their mainstream adoption and expansion across the globe.

The chief emphasized that the legal setup will lay a direct impact on the development of the country’s native CBDC project called the Digital Yen. It is essential to strike a balance between the privacy of investors and the potential risks of money laundering and white-collar misconduct. The governor of the central bank, Haruhiko Kuroda shared views on Digital Yen during the FIN/SUM fintech summit held on March 29, 2022. The chief revealed that the bank has no immediate plans to launch a CBDC as it wants to study its impact on the local people of the country.

The officials want to rest assured about the efficiency of the payment and settlement channels. The central bank has kickstarted round two of testing its Digital Yen project. The steps taken by the G7 nations, in the future, will have an impact on the process of the digital project. The country is likely to decide whether to roll out native crypto or not by 2026 depending upon the adoption rate of CBDC across the globe.   

The certified courses on cryptocurrencies and blockchain technology by Blockchain Council can help any person to sharpen their skills in the sector. They are designed by experts to offer full exposure in the field so that investors can start crypto trading with ease. 

If you want to keep up with the trends of blockchain industry, join our communities on Discord, Reddit and Telegram.

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A Complete List Of Stablecoins 2022

Complete List Of Stablecoins 2022

Ethereum and Bitcoin, which introduced crypto assets, caused profound levels of price volatility. Unlike fiat currencies, cryptocurrencies do not benefit from price stability mechanisms. Cryptocurrencies are based on very simplistic models, including fixed coin supply and predetermined block rewards. 

There is often little scope for changing the total coin supply since it is predetermined or already mined. Cryptocurrencies are unable to adhere to an adequate monetary policy, as is evident from their very nature. The crypto community is in need of a list of stablecoins to address the need for stability in the value of transfers.

Especially banks and private firms like Facebook are gaining a lot of traction in the stablecoin market lately. Stablecoins are essentially an alternative to the cryptocurrency landscape that reduces price volatility. An overview of the stablecoins that are expected to make news in 2021 is provided in the following discussion.

Stablecoins: What You Need to Know

Before going over the different popular stablecoins, it is important to know 

  • what they are and 
  • why they are important. 

Crypto investors amassed enormous wealth overnight and lost a significant amount of their shares within a few weeks. It was at this point that people realized cryptocurrency alternatives are extremely volatile. 

Moreover, cryptocurrencies don’t provide a reliable method of exchanging goods and services because of their volatility. The most successful stablecoins that have emerged in the crypto world have thus successfully addressed this issue. Stablecoins, compared to general cryptocurrency alternatives, are characterized by a high level of value stability. 

Stablecoins Are Becoming More Popular

With the recent phenomenon known as the ‘stablecoin invasion,’ demand for stablecoins is continuing to grow. In the current market, there are almost 200 stablecoins distributed globally, some of which are already released and some of which are in development. Gemini Dollar (GUSD) and Paxos Standard (PAX), two stablecoins backed by the US dollar, have also been approved and regulated by the New York State Department of Financial Services.

The overall value of stablecoin assets has crossed over $20 billion, according to a report from CB Insights. Many financial institutions looking to enter the crypto space, including JP Morgan, are interested in stablecoins. 

Stablecoin Types And Categories

It is possible to categorize stablecoins based on their supporting assets, primarily. The different types of stablecoins can be used to understand the stability of stablecoin prices. Below are some of the common stablecoins you are likely to encounter.

  • Stablecoin Backed By Commodities

The stability of stablecoins that are pegged to commodities is usually provided by hard assets. Gold or real estate are examples of hard assets. As collateral for stablecoins, gold is most commonly used, however many stablecoins use a diversified combination of precious metals.

  • Cryptoassets-Backed Stablecoins

Crypto-backed stablecoins, on the other hand, paint a very different picture than those pegged to crypto assets. There is a complete list of stablecoins available today, including crypto-backed stablecoins. It is possible for stablecoins to maintain overcollateralized positions under certain circumstances.

  • Fiat Currency-Backed Stablecoins

Besides fiat-backed cryptocurrencies, stablecoins can also be accessed via fiat. Many stablecoins are included in the 2021 stablecoin list, and they are very popular. Stablecoins are held as collateral by fiat currencies like the US Dollar, Euro, and Chinese Yuan, as suggested by their name. 

  • The Seigniorage of Stablecoins

In contrast to a currency or asset, seigniorage is generally managed by an algorithm or process. The Seigniorage-backed stablecoins can be supported by smart contracts on decentralized platforms. In 2021, the Blockchain Ecosystem will offer more opportunities. Blockchain technology will be used by several companies.

Stablecoins To Watch In 2022

Companies and individuals around the world are taking notice of stablecoins. In order to fully comprehend stablecoins, it is not sufficient to explain their definitions, features, and types. In 2022, it is necessary to identify stablecoins that will be able to guarantee exceptional results. 

You might encounter stablecoins in 2022 news stories about crypto. In this article, we have compiled a list of some of the top stablecoins.

  1. Tether

The USDT or Tether is undoubtedly an important addition to the stablecoin list. This is the most popular and largest stablecoin currently. Tether’s market capitalization is estimated to be over $32 billion by cryptocurrency exchange CoinGecko.

Because of its three-pronged strategy, Tether is also one of the best stablecoins currently available. By following the strategy, it has successfully launched three stablecoins. 

The most prominent stablecoin is USTether, which is pegged 1:1 to the US dollar. A second stablecoin pegged to the euro was later introduced by Tether. Another stablecoin created by Tether is called YenTether, which is pegged against the Japanese Yen.

On the other hand, Tether is also not without flaws. Besides lack of transparency, Tether has also been criticized for discrepancies in its collateralized reserves. The Tether project originally claimed that it would provide 100% support for USDT through its cash reserves, where it would hold a dollar for every USDT issued. 

  1. DAI

DAI is a stablecoin cryptocurrency offered by MakerDAO, a decentralized independent organization. It is a completely decentralized stablecoin, which ensures censorship-proofing against centralized administrations. There is no financial backing for it, including the US dollar.

Rather, MakerDAO’s DAI is backed by cryptocurrency collateral. DAI is created as a result of the collateralized loans on MakerDAO. Cryptocurrencies can be deposited on the MakerDAO Platform to borrow money. DAI also has the advantage of being a ‘multi-collateral’ stablecoin, making it one of the best stablecoins. You can ensure that DAI can be contributed to by different crypto assets if you use ‘multi-collateral’. 

Through the use of smart contracts, DAI can manage the concerns of stablecoin price. In addition to its unique features, the DAI token is an ERC-20 token based on Ethereum. Decentralized applications can thus benefit from DAI’s ability to facilitate desired levels of interoperability.

  1. USD Coin

Among stablecoins in 2022, USDC, also known as USD Coin, is prominently mentioned. USD Coin stands out from other stable coins in part because it is Coinbase’s official stablecoin. The token’s dollar value is completely backed by the US dollar, and it has been verified by the Circle company that founded it. 

Regulatory precedents can be better accommodated with USD Coin. In addition to obtaining the necessary licenses, the company has also made sure it complies with several jurisdictions. A further advantage of USDC is that it is based on Ethereum and an ERC-20 token, which is suitable for Defi applications. 

It has taken USD Coin a long time to reach the top of the stablecoin list since its founding in 2017. Despite that, its market capitalization is at least comparable to that of Tether at $7.5 billion. Therefore, it can provide reliable transparency regarding information regarding its cash reserves.

  1. True USD

True USD, which was added recently to the stablecoin list, is another promising addition. It offers crypto investors a transparent and efficient alternative to the USD fiat currency. In addition to Google, UC Berkeley, Palantir, and Stanford, members of the True USD team are involved in the effort. 

With inspiration from Tether’s protocol, True USD has evolved into a more stable cryptocurrency. TRUSD can be used to trade as it keeps a reserve of dollars. Users must comply with the KYC laws of the company in order to redeem TUSD pegged against USD.

Nevertheless, there is a specific disadvantage of True USD, which is that it has a hint of a middleman. Knowing the customer’s (KYC) data is necessary for True USD users. Additionally, users can be confident that TUSD will be supplied without any harm being done. As for True USD, it relies on the Trust protocol, which has solid regulatory support and reliable fiduciary guidance.

  1. Digix Gold (DGX)

Digix Gold, or DGX, is the perfect stablecoin with the backing of gold that is based on commodities. This is an ERC-20 token whose value is pegged to gold. Each DGX is pegged to an ounce of gold in Digix Distributed Autonomous Organization. 

In addition to keeping the identification of the gold bars against which the DGX token is pegged, it is also responsible for creating separate tokens for creating the DGX token. The Proof of Asset token is administered by smart contracts involved in the creation of the DGX token. Gold bars could be purchased according to the stated value of DGX. There are currently 200 million DGX tokens in circulation, and the stablecoin intends to expand its vault beyond Singapore. 

Some of the biggest cryptocurrency markets, including China, Japan, and the United States, cannot use DGX due to legal issues. DGX’s capabilities as a gold-pegged stablecoin limit its potential as one of the top stablecoins in the fintech sector.

  1. Havven’s Nomin

As a representative of the next generation of stablecoins in 2020, Havven’s Nomin and eUSD are also ERC-20 tokens. Stablecoins use Havven’s escrow technology in conjunction with Ethereum’s mainnet and Havven tokens. As a result of eUSD fees, ETH is generated that goes to users who have escrowed the ETH. 

Havven’s Nomin’s most important contributing factor in making it an attractive addition to the entire stablecoin list is its foundation. eUSD’s team includes many leaders with extensive experience in blockchain and fintech, which further proves its credibility. This makes the token the ideal candidate for serving as the Ethereum stable token. In addition to being a stabilizing currency, the eUSD could also serve as a proxy for other currencies on decentralized exchanges. On the other hand, it can also serve as a highly stable form of escrow in online work communities. 

In spite of its many benefits, eUSD has certain drawbacks, including criticism of its complicated design. There can be skepticism on the part of users regarding transparency. 

  1. Paxos Standard

In addition to the list of stablecoins in 2022, you should also remain focused on Paxos Standard. There is no doubt that Paxos, with a market capitalization of over $1 billion, is far behind Tether in terms of market capitalization. In addition to its market capitalization, Paxos offers much more. Paxos presents reliable prospects in terms of regulations as it has been approved by the New York State Department of Financial Services.

Paxos Standard’s reputation as a reliable stablecoin has also made PayPal’s partnership with them possible. Additionally, the approval served as a promising boost for Paxos’ aspirations to enter the crypto space. In order to gain dominance over other stablecoins, Paxos can utilize its partnership with PayPal to its advantage. With Paxos, Paxos may find it easier to achieve improved adoption with the global payment systems giant. Therefore, Paxos deserves a spot on the list of stablecoins that will be popular in 2022. 

  1. Binance USD

In order to counter the rivalry between Coinbase and the top crypto exchange platform, the latter developed its own stablecoin. Binance USD is pegged 1:1 to the US dollar at the moment. Most importantly, Binance USD can be used in almost any case where Ethereum’s ERC-20 protocol is compatible. Therefore, Binance USD offers something more than consistency as a stablecoin price.

Binance USD’s design makes it useful for varied types of commerce, while also ensuring better speed when executing transactions. Binance USD is also recognized as credible due to its approval by the New York State Department of Financial Services. Interestingly, Binance USD provides some of the same advantages that can be found with Paxos Standard as well. Unlike other stablecoins, Binance USD does not require additional fees for creating or withdrawing funds. Most importantly, Binance USD is the preferred stablecoin for people looking to use Binance exchange to transfer crypto-assets. 

The Bottom Line

Lastly, it’s quite obvious that it would be very difficult to include the entire list of stablecoins here. Readers can access a detailed analysis of the fundamentals of stablecoin and the reasons behind its popularity. Currently, the stablecoin ecosystem contains almost 200 stablecoins, making it difficult to compile a comprehensive list. On the other hand, the notable stablecoins listed here can provide valuable insights into the characteristics found in the majority of stablecoins.

Stablecoins have the best aspect evident in their name, i.e., stability. They can play a crucial role in driving cryptocurrency adoption and are already doing so. The use of stablecoins might be able to alleviate apprehensions associated with cryptocurrency volatility. Learn more about stablecoins as well as other noteworthy mentions in the crypto space right now to identify new avenues to explore.

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What are altcoins and how do they work?

What are altcoins and how do they work

Those who are interested in the world of cryptocurrencies and are willing to invest in them, it is almost imperative that one must gather some knowledge about Altcoins. 

The term Altcoins or Alternative Coins as they are called, is used to define those cryptocurrencies other than the globally popular Bitcoin or CRYPTO:BTC. Their very name is derived from the simple truth that these coins exist as an alternative to the biggest cryptocurrency in the world and also general fiat currencies. 

The first of the altcoins were launched back in the year 2011 and eventually till date, there are thousands of Altcoins swarming across the crypto market. Previously during the early days, altcoins were used to improve several aspects of Bitcoin, such as energy efficiency and transaction speeds. Nowadays these altcoins serve a variety of different purposes which again depends on the developers.

There is no denying that altcoins are a huge part of the crypto market as of now and it is exactly why every crypto investor should have a clear understanding of how they function. This article will further seek to explore the pros and the cons of altcoins and a lot more.

Types of Altcoins

There are several varieties of Altcoins existing in the market that include mining-based coins, stablecoins, governance coins and staking-based coins. The way in which an altcoin functions and the purpose for which it has been built will eventually result in the type of altcoin it would become. While researching altcoins, these are the main categories of altcoins that are prominent :

  • Mining-based- These are a type of cryptocurrency that uses a process known as mining and in doing so they can use it for verification processes for transactions and also in due course of mining, it helps to add more coins to the existing supply. The miners possess certain devices, which they use in order to solve certain mathematical equations. What generally happens is that the first miner who gets to unravel an equation will be able to verify a block of transactions. In return for their services the miners are presented with rewards in crypto.

For example, Bitcoin is a cryptocurrency which is based on mining principles as it was the first method to be employed in order to process the crypto transactions.

  • Stablecoins- Stablecoins are those cryptocurrencies which are specially designed to track the price of another such asset. Some of the biggest cryptocurrencies are pegged to the American dollar and they mimic the dollar value on their coin. If these prices seem to be fluctuating, then the one who actually issued the coins will be able to take necessary steps about it.

 Stablecoins are not always considered to be an investment worth crypto asset. This is because these coins are intended to maintain the same value as that of the USD. People mostly use these coins for the purpose of savings or for lending money to friends and family. Interestingly, it is also possible to earn interest on these coins through certain savings protocols.

  • Governance- These are tokens that provide the users with the right to vote in order to help reshape the future of the project if they wish to. Generally in most of the cases, it can be seen that these tokens allow the users to create and participate in voting on certain proposals that are directly related to the cryptocurrency. This enables the cryptocurrency to become a truly decentralized project where there are no central authority controlling the decisions and everyone has an equal say.
  • Staking-based-  Just like mining, these cryptocurrencies use the process of staking for verification purposes and also to add more coins on the network. The ones who are holding their coins can actually choose to stake their coins, which would imply that they are pledging those coins for the purpose of transaction processing. The blockchain protocol of the cryptocurrency would choose a participant and allocate that individual to carry out the task of verifying a block of transactions.

Now let us evaluate the different pros and cons of Altcoins!

Pros

  • Improve on Bitcoin related aspects.
  • Altcoins can offer extremely high potential in rewards.
  • There is a huge selection of Altcoins in the market and they have their own unique competitive advantages and purposes in the crypto space.

Cons

  • Altcoins do not really have the first mover advantage as that of the Bitcoin or even if we look at the market cap, they are nowhere near.
  • There are potential and significant risks related to altcoins as many altcoins turn out to be scams at the end of the day and there is a great many number of altcoins that just end up failing.
  • There are some altcoins which are not easy to purchase as they are only available on specific altcoin exchanges.

So by now, it should be pretty much evident that there is a huge difference between cryptocurrencies such as Bitcoin and other altcoins. However, in order to provide a little more clarity on this issue, certain clear distinctions between Bitcoin and altcoins are in order. 

The main areas of difference between Bitcoin and Altcoins

  • Bitcoin is much older as it was released back in the year 2009. The first of the altcoins were launched in the market by the year 2011 and nowadays, new altcoins are released almost every single day.
  • A key factor to note is that altcoins are far more advanced in their composition and orientation than Bitcoin, which is actually their predecessor. Bitcoin came out much before and hence its technology is outdated in terms of transaction speed and even costs. Altcoins in that respect are far more superior than Bitcoin.
  • Altcoins provide a much higher risk or reward scenario when it comes to investing in cryptocurrencies. Even though it is true that Bitcoin is quite volatile, it is also true that the cryptocurrency is a market leader and has recorded substantial growth. However, altcoins in comparison have more room for maximizing and achieving growth in the future.

Some of the prominent examples of altcoin are:

  • Ethereum (ETH) : Ethereum was launched back in the year 2015, and it was the first altcoin that provided programmable blockchain for the developers to make use of. Gradually it has gained the position of the second largest cryptocurrency in the world positioned right next to Bitcoin.
  • Namecoin (NMC) : Namecoin was released back in the year 2011, and possibly this was the first notable altcoin to be launched in the market. Namecoin shares a lot of similarity with Bitcoin, owing to the fact that it was built on the same code that was used by Bitcoin, and much like Bitcoin, Namecoin also has a supply of 21 million tokens. 
  • USD Coin (USDC) : USD Coin was launched in the year 2018, and it is a stablecoin whose value is pegged to the American dollar. It is under the governance of a consortium which goes by the name of Centre, and it includes Coinbase, Global, Inc.

Is it a good and a viable option to invest in altcoins?

One should always invest in the altcoins market, if they have a penchant for making crypto a part of their investments and also if they have the necessary time and the drive to study and research the crypto market on a daily basis. A blockchain certification or a cryptocurrency course provides the foundational knowledge for understanding the world of crypto a lot better. There are some altcoins in the market that are highly ambitious projects which have the power to provide a lot more use cases than Bitcoin, which is primarily seen as a store of value. It is also true that since altcoins are not very well known, there is a possibility that they could gather a lot of increase in their value if the coin can stick around and head through the market.

A notable downside to investing in altcoin is that since there are so many of them in the market, it becomes a daunting task to choose from the list of altcoins and find out the really potential ones to invest in. So if someone is willing to buy altcoin, it should be noted that there is definitely a level of risk added to that and moreover there are many small altcoins which are mostly a scam. So while investing thorough research is important.

Conclusion

So to conclude things, it must be remembered that altcoins are an excellent investment option for crypto enthusiasts, provided that they are willing to do their homework before investing. If someone is looking for an investment option that bears lesser risks or lesser time-intensive investments, then cryptocurrency stocks are a viable option for them. However, if one decides to invest in altcoins, it must be remembered that altcoins should be a small fraction of the entire portfolio so that the probability of risk is minimized by staking only the minimum.

As I mentioned earlier, in order to invest in crypto and dabble in the world of blockchain. It is always better to be prepared and gain knowledge about it first, and in order to learn the fundamentals of blockchain and crypto, there is no better alternative than the courses and certifications provided by the Blockchain Council. The Cryptocurrency Trading, Cryptocurrency Expert, courses and certifications on Blockchain Development and analysis will not only provide you with the in-depth knowledge but also empower you with practical skills that you can leverage in the highly competitive job market.

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