Coinbase Plans To Create Stablecoins That Track Inflation Rates

Key Points:

• Coinbase Global Inc. advocates developing stablecoins that track the inflation rate to preserve purchasing power.
• Despite Coinbase’s efforts to improve its offerings, the largest US crypto exchange recently received a notice from the Securities & Exchange Commission formally declaring the regulator’s plans to bring an enforcement action.

Coinbase Global Inc. advocates for stablecoins with inflation tracking to protect purchasing power in the volatile crypto market, as per Bloomberg.

This move comes after Coinbase issued a blog post on March 24, encouraging developers working on its new blockchain to focus on creating these so-called “flatcoins.” The Exchange believes that exploring the potential of stablecoins is of utmost importance, given the recent woes of the banking system.

Stablecoins are digital currencies designed to hold a constant value, typically $1, which provides crypto investors a place to park funds as they navigate the highly volatile digital-asset market. Coinbase’s call for stablecoins that track inflation rates is a response to the current economic climate, where investors are searching for a cushion against elevated post-pandemic price pressures.

In addition to advocating for stablecoins, Coinbase also wants developers to focus on creating more trust in individuals’ identities on blockchains and taking steps to make decentralized finance (DeFi) applications safer.

Coinbase’s latest move is part of the company’s efforts to expand its offerings and improve its services. Last month, the exchange rolled out Base, a layer-2 blockchain that aims to make transactions on the popular Ethereum network faster and cheaper. Coinbase also announced a related fund to support early-stage projects on Base.

Despite Coinbase’s efforts to improve its offerings, the largest US crypto exchange recently received a notice from the Securities & Exchange Commission formally declaring the regulator’s plans to bring an enforcement action. This is the latest step in a long-running dispute between the watchdog and the digital-asset business.

As the cryptocurrency market continues to evolve, it will be interesting to see how Coinbase and other exchanges respond to the challenges and opportunities that lie ahead.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Thana

Coincu News