Topics

Posted 9/12/2023, 11:31:20 AM

Coinbase CEO Predicts 'Flatcoins' That Track Inflation Will Be the Next Big Stablecoin Trend

Coinbase CEO Brian Armstrong believes "flatcoins" that track inflation are the next iteration of stablecoins. He sees them as better at retaining value than stablecoins pegged to currencies.
Flatcoins move in line with inflation rates rather than being pegged to a currency or asset. They use cost-of-living indices to adjust supply and track inflation.
Examples are Nuon, Spot, Solana's ISC, and Collypto. They aim to protect purchasing power rather than just nominal value.
Challenges include needing enough collateral assets to compensate when investors exit, and uncertain regulation as regulators crack down on non-fiat-backed stablecoins.
Armstrong sees potential, but flatcoins face hurdles around collateralization, yields, hacks, and regulation before mainstream adoption.

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Relevant topic timeline:

8/21/2023

Coinbase Gets a Stake in Stablecoin Operator Circle and USDC Adds 6 New Blockchains

Cryptocurrency exchange Coinbase is acquiring a minority stake in Circle Internet Financial, dissolving their partnership and bringing the stablecoin USD Coin fully in-house, while also adding native support for USDC on six additional blockchains, bringing the total to 15.

8/31/2023

Coinbase CEO Brian Armstrong Reveals His 10 Favorite Crypto Innovations - Decrypt

Coinbase CEO Brian Armstrong shared ten emerging ideas in the cryptocurrency space that excite him, including the creation of a CPI-linked stablecoin, on-chain reputation systems, on-chain advertising, and decentralized labor markets.

9/8/2023

Coinbase CEO Armstrong Previews Web3 Priorities Ahead of 2024 Election

Coinbase CEO Brian Armstrong discusses the company's base layer 2 blockchain network, interest in flatcoin, and the need for regulatory clarity in the crypto industry, suggesting that the courts, congress, and the CFTC could provide clarity and that there could be a new SEC chair in 2024.

9/9/2023

Coinbase CEO Calls for Crypto Regulatory Clarity as Adoption Grows

The lack of clear crypto regulations in the US has caused significant issues for the industry, leading to collapses and a weakening of America's position as a financial hub, according to Coinbase CEO Brian Armstrong. He emphasizes the need for clear rules that recognize the innovation potential of the technology while protecting consumers. Armstrong also highlights the potential benefits of Bitcoin exchange-traded funds (ETFs) and Coinbase's role as custodian in many ETF applications.

9/10/2023

Coinbase CEO: Crypto Community's Voting Power Will Make Crypto a Hot Topic in 2024 Election

Coinbase CEO Brian Armstrong predicts that cryptocurrencies will be a prominent topic in the 2024 US elections as the gap between current crypto policies and the needs of Americans becomes more apparent.

9/15/2023

Coinbase CEO Backs DeFi in Courts, MakerDAO Founder Bullish on Dai, Polygon's ZK Bet Pays Off as DEX Wash Trading Exposed

Coinbase CEO Brian Armstrong advocates for decentralized finance (DeFi) protocols and suggests legal action to establish a legal precedent, while MakerDAO's founder believes decentralized stablecoins could dominate the crypto market, and Polygon CEO acknowledges the success of their $1 billion investment in zero-knowledge proof rollups. Additionally, market surveillance firm Solidus Labs reveals that decentralized exchanges have become a hotspot for wash trading, and a DeFi advocacy group petitions to stop a patent troll from targeting DeFi protocols. Despite a mixed week for the top 100 DeFi tokens, the total value locked into DeFi protocols remains above $49 billion.

9/22/2023

Major Cryptocurrencies Flat After Fed News; Lower Volume May Signal Bearish Slowdown

Bitcoin, Ethereum, and Dogecoin traded flat following the Federal Reserve's decision to hold interest rates steady, while the lower volume signals a possible consolidation phase.

9/25/2023

Coinbase Seeks to Diversify Beyond Bitcoin Trading Despite Remaining Highly Dependent on It

Coinbase is looking to diversify its revenues, but for now, it remains heavily reliant on Bitcoin trading.

9/30/2023

Coinbase CEO: Lack of Crypto Regulation Threatens US Dollar Dominance and Tech Leadership

Coinbase CEO Brian Armstrong emphasizes the importance of the US establishing a regulatory framework for crypto assets, stating that it is a national security issue and that the country is falling behind other major economies in terms of regulatory clarity, resulting in a decline in the US job market share for the crypto industry.