• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Sensei Inu Logo Sensei Inu Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
      • Casino utan svensk licens
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Best crypto casino
Breaking News: BREAKING: Three Arrows Capital Co-Founder Receives 4-Month Jail Sentence In Singapore
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
      • Casino utan svensk licens
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Best crypto casino
Bitcoinist.com
No Result
View All Result
Breaking News: BREAKING: Three Arrows Capital Co-Founder Receives 4-Month Jail Sentence In Singapore
2020 year of crypto stablecoins

e-Money’s Yield-Bearing Stablecoins Are Smart Money for the Crypto Generation

Bitcoinist by Bitcoinist
2 years ago
in Industry
0

e-Money is a fast, frictionless form of digital cash that can be used for payments, remittances, and as a safe store of value cryptocurrency, especially during periods when crypto market volatility is high. Its greatest characteristic, though, lies in its ability to generate yield for its holders. Understanding how this works calls for a quick dive into the history of stablecoins, to learn their attributes and limitations which spawned the creation of e-Money.


From Stable Money to e-Money

Since their introduction in 2017, stablecoins have helped solve some of the most pressing problems within the cryptocurrency space. From collateralized stablecoins (such as crypto-backed and currency-backed stablecoins) to algorithmic stablecoins that mimic fiat currency, stablecoins have helped provide liquidity, stability, and growth to key cryptocurrency markets. Their evolution has also helped to counter the long-standing perception of crypto as a volatile space, and given traders a safe haven when the macro outlook turns bearish. 

However, to this day, there are two critical problems with the three current stablecoin options. Firstly, concerning crypto-collateralized stablecoins, tokens do not hold collateral in the same form as the financial instrument they are pegged to. This means that over-collateralization is required, which translates to an inherently inefficient system.

Currency-backed stablecoins, meanwhile, are intended to maintain a one-to-one peg with a fiat currency such as the USD. However, their issuance and implementation raises concerns due to crypto’s strained relationship with the traditional banking sector. Covering operational expenditure from interest held on the reserve also gives rise to friction and instability within the system, and some stablecoin projects have had to bow out due to regulatory fears, especially in the U.S. during the height of ICO hype in 2018. 

In a negative interest environment such as the Eurozone and Japan, the long-term viability of the fiat-backed model may come under strain, given how issuers are driven to endure additional risks, tap into the reserve, or charge issuance redemption fees to cover the shortfall incurred.

What Makes e-Money Different

Enter e-Money, a fast, frictionless, interest-bearing stablecoin designed to usher in an era of low-cost trading and instant settlement. Engineered as a layer-2 solution for fiat, e-Money is the brainchild of e-Money A/S, a Danish Fintech firm specializing in cutting-edge technologies that bridge traditional financial services and distributed ledger technology. Built using Tendermint and Cosmos SDK, and with code audited by Certik, e-Money is a regulator-friendly stablecoin whose model supports any currency and interest rate environment – even negative. The e-Money network is secured by a staking token (NGM), with inflated tokens distributed pro-rata as staking rewards.

e-Money currently has five currency-backed stablecoins with more to follow in 2021. At present, stablecoins comprise the Euro, Swiss Franc, Swedish Krona, Norwegian Krone, and Danish Krone. Although the ubiquity of stablecoins is undeniable, e-Money’s commitment to building bridges between networks, not to mention its quarterly reserve audits and interest-bearing attributes, marks it out as a different proposition entirely.

Lastly, e-Money recently released its Ethereum bridge that will allow for seamless transfers between e-Money and Ethereum. The implications of this bridge include access to one of the most liquid and vast blockchain networks on the market and all of the benefits that come with that. Keep an eye out for e-Money in upcoming months as the company scales with upcoming strategic partnerships and a new brand identity. 


Disclaimer: The information presented here does not constitute investment advice or an offer to invest. The statements, views, and opinions expressed in this article are solely those of the author/company and do not represent those of Bitcoinist. We strongly advise our readers to DYOR before investing in any cryptocurrency, blockchain project, or ICO, particularly those that guarantee profits. Furthermore, Bitcoinist does not guarantee or imply that the cryptocurrencies or projects published are legal in any specific reader’s location. It is the reader’s responsibility to know the laws regarding cryptocurrencies and ICOs in his or her country.

 

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

Bitcoinist

Bitcoinist

Bitcoinist is the ultimate news and review site for the crypto currency community!

Related Posts

Crypto Entrepreneurs to Follow

Crypto Entrepreneurs to Follow

2 days ago
iGaming Revolution: How Blockchain is Changing the Industry 360°

iGaming Revolution: How Blockchain is Changing the Industry 360°

3 days ago
Hot New Crypto ICO Offers Alternative To Bitcoin Staking – Earn 30,000% APY With Bitcoin Minetrix

Hot New Crypto ICO Offers Alternative To Bitcoin Staking – Earn 30,000% APY With Bitcoin Minetrix

3 days ago
Best Sites like Bovada USA – Top 10 Casino Sites Like Bovada

Best Sites like Bovada USA – Top 10 Casino Sites Like Bovada

3 days ago
Layer-3 Networks Rise To The Challenge Of Liquidity Fragmentation

Layer-3 Networks Rise To The Challenge Of Liquidity Fragmentation

4 days ago
Top 5 Cryptocurrency and Digital Asset Exchanges Launched in 2023

Top 5 Cryptocurrency and Digital Asset Exchanges Launched in 2023

5 days ago
Please login to join discussion

Premium Partners

Premium Casino Partners

Play Finance

Top Casinos

Trust Dice
Trust Dice
Punt Casino
Punt Casino
mBit
mBit

Press Releases

  • Best 7 Cryptos For Beginners To Buy

    49 mins ago
  • From Setbacks to Success: Uwerx’s Recovery/Relaunch...

    3 hours ago
  • Prepare for the Next Bull Market: The 5 Best Cryptos to Buy...

    7 hours ago
  • Meta Force and Lado Okhotnikov Presented the Results of...

    19 hours ago
  • Bitcoin (BTC) and Litecoin (LTC) Ascending – Is it a...

    23 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
      • Casino utan svensk licens
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Best crypto casino

© 2023 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.