Coinbase CEO Brian Armstrong in a latest interview unveiled his curiosity in a novel idea inside the cryptocurrency sphere, often known as “flatcoins.” In response to Armstrong, flatcoins symbolize the following evolution of stablecoins, providing a novel method to sustaining worth stability within the risky world of cryptocurrencies.
Flatcoins, as Armstrong defined, are stablecoins that derive their worth from a special supply in comparison with conventional stablecoins. Slightly than being backed by fiat foreign money or a basket of property, flatcoins are pegged to buying energy or the Shopper Worth Index (CPI).
Which means the worth of a flatcoin would fluctuate to replicate modifications in the price of items and companies, making it probably extra resilient to inflation and financial fluctuations.
Though Coinbase just isn’t at the moment engaged on growing its personal flatcoin, Armstrong expressed a eager curiosity in exploring this modern idea. He famous that the cryptocurrency group, together with influential figures resembling former Coinbase CTO Balaji Srinivasan and Ethereum creator Vitalik Buterin, has engaged in discussions surrounding flatcoins.
The core concept behind flatcoins is to supply a cryptocurrency that may protect its buying energy over an prolonged interval, offering a extra steady type of digital cash.
Flatcoins: A ‘Higher’ Type Of Cash?
In Armstrong’s view, flatcoins have the potential to be a “higher type of cash” inside the cryptocurrency area when in comparison with current cryptocurrencies and stablecoins. This assertion underscores the idea that flatcoins may handle among the inherent volatility and worth fluctuation points which have plagued the crypto marketplace for years.
Through the interview, Armstrong additionally highlighted Coinbase’s latest accomplishments, together with the profitable launch of Base and its Coinbase Derivatives alternate. Base, a venture initiated below Coinbase’s Onchain Summer time initiative, has gained vital traction within the crypto area and is now ranked because the third-largest Layer 2 chain on Ethereum by Whole Worth Locked, based on information from The Block.
As of at this time, the market cap of cryptocurrencies stood at $1.01 trillion on the every day chart: TradingView.com
Enterprise Investments In Progressive Ideas
Armstrong’s enthusiasm for flatcoins isn’t restricted to informal dialog. In a earlier submit on X, he had outlined the ten crypto concepts that excited him probably the most, with flatcoins prominently featured. Within the interview, Armstrong hinted at the potential of Coinbase channeling a few of its enterprise investments into these promising crypto concepts, together with flatcoins.
This implies that Coinbase is actively exploring avenues to contribute to the event and adoption of modern cryptocurrency ideas.
Armstrong’s curiosity in flatcoins underscores the continued evolution of the cryptocurrency area. Whereas flatcoins are nonetheless largely untested, they symbolize a compelling method to making a extra steady and resilient digital foreign money. Coinbase’s potential involvement on this thrilling improvement hints on the firm’s dedication to pioneering new monetary applied sciences and reshaping the way forward for digital cash.
Featured picture from iStock
