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It seems to me that your currency loses its peg the minute that the cryptocurrency price collapses.
by empath75 9y ago
It seems to me that your currency loses its peg the minute that the cryptocurrency price collapses.
- 55555 9y agoThe parent comment (empath75) sounds correct to me. If people deposit a bunch of cryptos, but cryptos are highly correlated in downward movement, and the general crypto market suffers, then this new crypto is no longer pegged to USD. EDIT: looks like this is covered under "Reserve Deficit Sell Penalty". I don't really understand this part but regardless this won't be pegged to the dollar.