In a recent blog post, crypto exchange Coinbase has urged developers to create stablecoins pegged to the inflation rate on its new blockchain, Base.
The platform said exploring the potential of stablecoins became more important than ever following the U.S. banking crisis triggered by the consecutive collapses of crypto-friendly Silvergate Bank, Silicon Valley Bank (SVB), and Signature Bank in March.
The inflation-pegged stablecoins, which Coinbase calls flatcoins, will track the inflation rate to preserve their value.
- Coinbase also pointed out that it is open to other forms of flatcoins that are not pegged to fiat currencies but rather bridge the gap between pegged coins and volatile crypto assets.
- The popular crypto exchange added that developers should focus on areas like creating trust and safety on blockchains and decentralized finance (DeFi) apps.
- The firm launched its Ethereum-powered Layer-2 blockchain network, Base, in February.
- Base mainly aims to form a secure, faster, and low-cost area for developers to create decentralized apps (dApps) on blockchains and Layer-2 networks.
- Following the Base network’s launch, Coinbase also announced a fund to support early-stage projects on its blockchain.
Stablecoins are cryptocurrencies whose value is pegged to another reference asset, usually a fiat currency.
- Tether (USDT), USD Coin (USDC), and Binance USD (BUSD) are all among the most popular stablecoins with higher market caps.
