In a recent interview with Yahoo Finance, Coinbase CEO Brian Armstrong discussed a notable emerging concept in the cryptocurrency space - Flatcoins. Armstrong, in his characteristic composed manner, emphasized Coinbase's interest in this new development, marking it as a significant trend to watch.
Flatcoins, described as stablecoins with an intriguing twist, are designed to be pegged to the cost of living, ensuring their purchasing power remains steadfast in the face of inflation fluctuations. They are being touted as a safeguard against rising costs and market volatility, adding a fascinating layer of innovation to the crypto landscape.
This article explores the concept of Flatcoins, delving into their potential to redefine the cryptocurrency landscape and their practical applications in the evolving financial ecosystem. If you're curious about the world of Flatcoins and their potential impact, read the full article for an informative exploration.
In an interview with Yahoo Finance, Coinbase CEO Brian Armstrong discussed various topics ranging from their SEC lawsuit to cutting edge crypto projects.
When asked what can be expected from Coinbase, Armstrong claimed that Flatcoins are the "new thing on the horizon" and that Coinbase is "interested in it".
One word stood out for many, and that was: Flatcoins.
It is the second time within 2 weeks that Brian Armstrong has specifically hailed Flatcoins and their potential.
The first time came in a Coinbase blog post that highlighted the top ideas in crypto startups and called out for new builders.
"Bitcoin is the gold standard of the internet, and that's a great idea for a currency. But because it has so much upside, many are less willing to spend it as currency today. It still has some growing to do. Fiat-backed stablecoins are a great intermediary step, but they suffer from inflation and seizure - just like fiat money. What would it look like to make a better form of money enabled by crypto? It would probably be totally decentralized and track consumer prices to preserve purchasing power, or something close to it. It may need to be backed by a basket of assets to track CPI, or use an algorithmic approach. Services like Truflation even offer a way to potentially track inflation onchain today, to further decentralize it. The company or protocol that helps build a better form of money in crypto would have a huge impact." - Brian Armstrong, CEO of Coinbase
What is a Flatcoin?
Simply put, a Flatcoin is a stablecoin that is pegged to the cost of living in order to keep up with the rate of inflation.
Flatcoins are described as an "inflation-proof" coin, and as a way for investors to protect their assets from rising costs and volatility.
The goal of Flatcoins is to keep the purchasing power of the coin the same, while the cost of living may fluctuate up or down depending on inflation.
This post, by ex-Coinbase CTO Balaji Srinivasan (@balajis), in 2021 is credited with being the first public mention of Flatcoins.
The cryptocurrency Nuon claims to be the first Flatcoin created back in 2022. Nuon is pegged to Truflation, an independent inflation index oracle, and is used as a hedge against inflation and to take advantage of arbitrage opportunities.
Some other examples of Flatcoins are:
Spot - is an Ampleforth Foundation project that is pegged to the cost of living in the USA
Collypto - a blockchain-tradable flatcoin collateralized using a tokenized index of real estate and commodities.
LendrUSD - is a specialized stablecoin with an inflation index pegged price target.
International Stable Currency - is a flatcoin pegged to the value of an underlying basket of real world assets, that does not include the US dollar.
Do you think Flatcoins will replace Stablecoins as the premier spending cryptocurrency?
Are they any other cryptocurrency ideas that have not been created yet?
What are your thoughts on this news? Join the conversation below!
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