Faced with the recurring problems of the current stablecoins losing their parity with the dollar on several occasions, Cardano has announced the launch of its own fully fiat-backed stablecoin 1:1 to the dollar. in the first quarter of 2023. Below we evaluate the advantages that this new option could offer to the crypto ecosystem in general.
USDA may be the future of stablecoins.
This new stablecoin project is being driven by Emurgo, one of the founding partners of the Cardano network that is in charge of developing solutions on the Cardano network. Emurgo plans to expand Cardano’s use cases, including lending and lending services, cryptocurrency-based card payments, and bridging between traditional marketplaces and decentralized applications (dApps).
“The introduction of a fully fiat-backed, regulatory-compliant stablecoin is the next step in realizing the future of our community”
Vineeth Bhuvanagiri
Managing Director of Fintech at Emurgo
What will be the new stable coin of Cardano?
USDA will be the new stable cryptocurrency of the Cardano ecosystem and will allow users to exchange digital dollars through credit/debit cards, bank transfer or ADA conversion, to the USDA stablecoin that will be pegged to the US dollar.
What is the goal of the Cardano stablecoin?
The reach that Cardano has had in recent years has positioned it as one of the most solid projects today, but due to the volatility of the crypto market, it prevents users from taking full advantage of the global nature of Cardano services. , as a means of payment, store of value or exchange of money.
The creation of a stablecoin anchored to the dollar will generate the necessary confidence in investors and will allow the creation of new financial opportunities in the Cardano ecosystem.; this will provide support for a stablecoin that will help reduce uncertainty around algorithmic stablecoins, especially after the TerraUSD crash in May.
In conclusion.
Therefore, the creation of a dollar reserve-backed stablecoin will help build confidence in Cardano investors and enable stable financial offerings for ADA holders. Furthermore, this stablecoin will help reduce uncertainty around algorithmic stablecoins, especially after the TerraUSD crash in May.
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