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What is the correct way to start a stable coin so a broader population will adopt the cryptocurrency concept without worrying about exchange rate fluctuations?

There are many obvious applications for a cryptocurrency that follows a fiat currency and I don't think this should be limited to the major currencies like USD, EUR, JPY. I'm interested in the rest of the world.

This should not be a centralized solution like Tether where people are required to trust a single company that promises it has the fiat locked up in a bank account as collateral.

The stable coin should be a concept similar to BitShares with the new Bancor algorithm so there is no need for actual fiat to back up the stable coin.

What are the requirements for such a stable coin and who issues the new currency?

  • Do we need to wait for the distributed exchange on top of EOS?
  • Do we need oracles to get the exchange rate for the fiat to EOS pair we want to start issuing?
  • Can other people participate and add liquidity and float to the new stable coin pair?
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The design issues of a stablecoin are largely independent of the EOSIO platform. If you can solve for these issues, the implementation on a given platform are greatly simplified -- and you'll be able to ask questions that are relevant to the EOSIO technology.

You can listen to an excellent treatment of the topic of Stable Coins on Laura Shin's "Uncahined" podcast here:

http://unchained.forbes.libsynpro.com/why-its-so-hard-to-keep-stablecoins-stable

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