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Are any of the cryptocurrencies out there with a "monetary policy" aim of fised exchange rates, IE a digital derivative of USD or EUR? I know this is sort of he

Are any of the cryptocurrencies out there with a "monetary policy" aim of fised exchange rates, IE a digital derivative of USD or EUR? I know this is sort of heretical in that it abandons some of the lofty, revolutionary goals of digital currency but... Currencies like e-pesa or the simpler share-able phone credit pseudo-currencies, give their users stable values. It's hard to imagine a neigborhood shop in Manilla dealing with bitcoin's volatility. I think you need either (1) very fast, cheap & easy ways of converting to hard currency or (2) price stability. I was hoping that bitcoin would develop the first. That way bitcoin could work as a sort of infrastructure, with most people thinking in fiat currencies but the actual transaction taking place in bitcoin. That hasn't really happened. ^Oh, and I generally like the idea of bootstrapping up to full fledged currency from an embedded, toy currency base. Good luck Kik.

flashdance 9y ago
Tether is a cryptocurrency that attempts to have a fixed exchange rate with the USD. It does this fairly okay-ish. There were a few moments when its price dropped well below $1 because of insolvency fears but it seems to have rebounded. Below is the whitepaper: https://bravenewcoin.com/assets/Whitepapers/Tether-White-Paper.pdf https://bravenewcoin.com/assets/Whitepapers/Tether-White-Pap...
elif 9y ago
ok, so you mint coins proportional to increases in price in order to match your target price.. you distribute those coins equally among all coin holder proportional to their holdings. assuming you can mint coins continuously, you are able to keep the price fixed... Until the elephants (biggest holders) realize that they can buy at $1.01 to ensure they keep getting minting payouts which eclipse the $0.01 premium they are paying to float the market. It's a runaway feedback loop for them until... the the price drops below $1.00. What is the mechanism to deflate the currency? a greek style haircut seizure? welcome to a flash crash as all rational parties move their value to other currencies... so to prevent the former feedback loop, you can impose a sufficient transaction fee. to prevent the latter feedback loop you can implement bank-style currency controls, a technical limit on withdrawal rates.. so you end up with a currency which is subject to the exact same (perpetual inflation) negative performance of its fiat counterpart, but with higher fees and stricter controls in place... So it's got the worst of both worlds
drdeca 9y ago
a group called "MakerDao" is working on a token on Ethereum called Dai, which is backed by collateral in the form of a variety of different tokens, and is set up so that the price will target some multiple of something called "Special Drawing Rights", which is a basket of national currencies. I think eDollar is (was?) going to be (is?) something backed with Dai, which would target the value of USD . (I have not kept up with it, so I don't know what the state of eDollar is.)
- deleted 9y ago
  [deleted]
- RexetBlell 9y ago
  There is also Digix which plans to issue Gold backed tokens. https://www.dgx.io/ https://www.dgx.io/

flashdance 9y ago

Tether is a cryptocurrency that attempts to have a fixed exchange rate with the USD. It does this fairly okay-ish. There were a few moments when its price dropped well below $1 because of insolvency fears but it seems to have rebounded. Below is the whitepaper: https://bravenewcoin.com/assets/Whitepapers/Tether-White-Paper.pdf https://bravenewcoin.com/assets/Whitepapers/Tether-White-Pap...

elif 9y ago

ok, so you mint coins proportional to increases in price in order to match your target price.. you distribute those coins equally among all coin holder proportional to their holdings. assuming you can mint coins continuously, you are able to keep the price fixed... Until the elephants (biggest holders) realize that they can buy at $1.01 to ensure they keep getting minting payouts which eclipse the $0.01 premium they are paying to float the market. It's a runaway feedback loop for them until... the the price drops below $1.00. What is the mechanism to deflate the currency? a greek style haircut seizure? welcome to a flash crash as all rational parties move their value to other currencies... so to prevent the former feedback loop, you can impose a sufficient transaction fee. to prevent the latter feedback loop you can implement bank-style currency controls, a technical limit on withdrawal rates.. so you end up with a currency which is subject to the exact same (perpetual inflation) negative performance of its fiat counterpart, but with higher fees and stricter controls in place... So it's got the worst of both worlds

drdeca 9y ago

a group called "MakerDao" is working on a token on Ethereum called Dai, which is backed by collateral in the form of a variety of different tokens, and is set up so that the price will target some multiple of something called "Special Drawing Rights", which is a basket of national currencies. I think eDollar is (was?) going to be (is?) something backed with Dai, which would target the value of USD . (I have not kept up with it, so I don't know what the state of eDollar is.)

deleted 9y ago
[deleted]
RexetBlell 9y ago
There is also Digix which plans to issue Gold backed tokens. https://www.dgx.io/ https://www.dgx.io/