Cryptocurrency- Binance Labs, the independent investment vehicle for the world's largest cryptocurrency trade by volume and user base, has announced the support of a $ 32 million project to create a new stable currency. Compared to traditional cryptocurrencies, such as Bitcoin, Ethereum and the overwhelming majority, stable currencies provide some form of relative price security by anchoring the value of money to an external source. In the case of Tether, the eighth largest currency by market capitalization and by far the most high-profile stable currency in the world, the USDT is anchored to the valuation of a US dollar, offering investors a & # 39; option to secure their funds on the stock exchanges at an irregular market price event.
As more investors and blockchain developers try to use cryptocurrency in a way that does not necessarily lend itself to an investment vehicle, stable currencies are becoming a more popular option as a way to avoid enormous volatility in market prices and general fluctuations in an assessment that makes it difficult to encrypt cryptography as a form of digital offering. While the overall cryptocurrency market has been attracted by the massive opportunity for price appreciation, deflation and price gain, stable currencies offer other benefits through their ability to provide daily consistency.
Binance, along with three other exchanges, has joined forces to finance a new currency entitled Terra with the goal of increasing the adoption of cryptocurrency through the appeal of a stable currency. Focusing on the consumer, particularly on one who wishes to use an alternative digital offering such as cryptocurrency over public, Terra is targeting Asian-based eCommerce as the first wave of adoption. The idea is to create rewards and discounts for Terra customers, thus encouraging the use of stable money on traditional payment routes, without increasing costs for traders. Unlike the payment of bank and card commissions, the Terra team is pushing traders to transfer the cost difference (sometimes up to 4% of the total transaction) to Land consumers.
Speaking in an interview with Fortune one of the founders of Terra Daniel Shin explained his image for the new project,
"Imagine going to Amazon and clicking on" Land Pay " "At the cash desk, you do not need a wallet, etc. All you know is that it's a better deal."
The idea is to increase adoption through the new source of payment in addition to dragging out of the growing movement of digital payments and crypto-alternatives to government fiat. Shin and other supporters of the Earth see the advantage in their currency through the stable currency model, which will find much more traction with the average consumer and those who are rejected by the current cryptic price volatility. Rather than marrying the investment opportunity to be realized, Terra is being advertised as a form of discounted payment, although it provides similar advantages of cryptocurrency and blockchain.
The long-term goal of the currency, according to Shin, is to create a secondary currency to anchor the value of Terra a, opposing only to a still fiat as in the case of the USD of Tether.