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How to create a stablecoin?

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Dog_Bit

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Let's say I have 100 dollars in one bill. I guarantee that this bill will always be with me. Next, I issue 100 tokens on some blockchain and announce that 1 token is equal to one dollar. Will it be a stablecoin?

Will my words and a photo of a $100 bill be enough? When USDT was launched, they did not have a guarantee that all tokens were backed by the dollar.


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#1 - November 24, 2022, 06:55:10 PM

MrPips

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Quote from: gorec on November 24, 2022, 06:55:10 PM
Will it be a stablecoin?

Will my words and a photo of a $100 bill be enough?
I would say no, because stable coins should be proven. A picture is just a picture. And a guarantee is just words. There should be 3rd party verification at minimum. I would also say there needs to be convertibility too. So if I have 1 stable coin and want to redeem it for a real Dollar then I should be able to do that somehow.
#2 - December 17, 2022, 11:34:42 PM

Dog_Bit

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Quote from: MrPips on December 17, 2022, 11:34:42 PM
I would say no, because stable coins should be proven. A picture is just a picture. And a guarantee is just words. There should be 3rd party verification at minimum. I would also say there needs to be convertibility too. So if I have 1 stable coin and want to redeem it for a real Dollar then I should be able to do that somehow.
But after all, Tether initially no one checked that the emission of their tokens was confirmed by dollars on the accounts? They just told people that it was. Now that many want to go down this path, third party confirmation is needed.
#3 - December 17, 2022, 11:40:28 PM

smdburst

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The only way any stable coin can be trusted is if an independent, reputable auditor reviews their holdings, practices, and and protocols annually and that a report be made available directly to the public.  This is not rocket science.  This is how many financial institutions demonstrate public trust.  When I hear that almost all stable coins are reluctant to open there books to such an audit, I immediately mistrust them.
#4 - January 20, 2023, 04:04:26 PM
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