Crypto News– In a recent interview with Yahoo Finance, Brian Armstrong, the CEO of Coinbase, expressed his belief that flatcoins represent ‘the next evolution of stablecoins.’
Coinbase is Developing Stablecoin
‘While Coinbase has yet to embark on development in this area, Armstrong conveyed a keen interest in the concept. He asserts that flatcoins have the potential to become ‘the superior form of currency in the cryptocurrency realm,’ surpassing the existing cryptocurrencies and stablecoins.
What is Flatcoin?
Flatcoins are essentially decentralized stablecoins designed to address various needs, including tracking inflation. Armstrong contends that flatcoins could serve as a responsive solution to the uncertainty that investors have encountered in the financial markets during the 2022-2023 crisis.
The term ‘Flatcoin‘ appears to have been coined by former Coinbase CTO Balaji Srinivasan. Srinivasan argued that if a particular fiat currency experiences inflation, stablecoins pegged to that fiat would also exhibit inflationary tendencies. To circumvent this issue, he proposed the concept of a Flatcoin, tethering its value to ‘an on-chain basket of goods.’ This novel approach aims to mitigate the potential inflationary drawbacks associated with traditional fiat-pegged stablecoins, potentially making flatcoins a more reliable and versatile financial instrument in the cryptocurrency space.
I also put out a blog post talking about some of the future ideas on the horizon. And a number of our venture investments might go into things like that. But I talked about flat coins, which is kind of the next iteration of stablecoins that’s more maybe linked to CPI or purchasing power. The Flatcoin concept is] a new thing on the horizon. There’s a couple teams working on it.
Brian Armstrong, Coinbase CEO
Ten Applications for Blockchain Technology
Armstrong has previously discussed the potential of flatcoins, a cryptocurrency type he deems essential due to individuals’ hesitance to spend Bitcoins (BTC). He also points out that stablecoins are susceptible to inflation and confiscation.
This announcement coincided with the presentation of various concepts related to optimizing blockchain technology. These concepts encompass on-chain reputation systems, on-chain advertising, on-chain capital generation, crypto employment platforms, and privacy enhancements for secondary blockchain layers.
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