Coinbase Plans to Develop Inflation-pegged Stablecoin flatcoins
Cryptocurrency exchange giant Coinbase expresses plans to develop a new type of stablecoin called "flatcoins". Unlike other stablecoins which are usually pegged to the value of the US dollar, flatcoins will be pegged to the rate of inflation. This means that the value of flatcoins will automatically adjust in response to changes in the inflation rate, helping to protect users from the effects of inflation.
According to Coinbase, flatcoins will be issued on a blockchain and will be designed to work seamlessly with existing cryptocurrency wallets and exchanges. The company hopes that this new stablecoin will appeal to users who are concerned about inflation and want a more stable store of value for their digital assets.
While the development of flatcoins is still in its early stages, Coinbase has already filed a trademark application for the name "flatcoin". The company has not yet announced a launch date for the new stablecoin, but it is expected to be released soon.
According to Coinbase
"We are particularly interested in fiatcoins - stablecoins that track the rate of inflation enabling users to have stability in purchasing power while also having resilency from the economic uncertainly caused by the legacy financial system."
These assets would be tied to inflation rates they are expected to retain their value over time this option is particularly useful in nations or states with high inflation rates as buyers may be reluctant to keep their savings in local currency owing to its velocity
According to flatcoin developers urged to formulate an on-chain reputation system and on-chain limit order book exchange also tools to make the DeFi space more secure are requested.
“We recently launched Base, a secure, low-cost, developer-friendly Ethereum L2. Our vision is to collectively work towards an ambitious goal: bringing the next billion users on-chain. One of our values from the beginning has been “Base is for everyone” and we’re so grateful to see builders around the world starting to make Base their home.”