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Does BCH have a stablecoin?

"Stablecoins" are a class of a cryptocurrencies that attempt to offer a combination of the strong transactional properties of cryptocurrencies with the "stability" of fiat currencies such as the US Dollar. This can be achieved in various ways, such as having a centralised issuer (ironically) that promises to redeem tokens for fiat currency or by "overcollateralised" DeFi versions that "back" their fiat-pegged tokens with volatile cryptocurrencies in sufficient volume.

Note that stablecoins have extreme popularity as a volatility free cryptocurrency medium of exchange, despite their frequent centralisation risks, susceptibility to inflationary debasement, surveillance and so on. However, BCH Podcast listeners should be VERY aware that these projects do have significant risks, even if they are large & popular. Be very careful in engaging with these projects. See: the information about how Tether is a scam.

As of June 2024, there are no stablecoin projects on Bitcoin Cash. However, despite the rampants problems in this segment of the market, this is an area of DeFi & finance that BCH has to to compete in (and ideally elevate to a more legitimate offering). Therefore, it's important that innovations and projects emerge in this space.

Possible emerging solutions‚Äč

What are some of the most likely ways BCH has a stablecoin solution to offer in the medium term future?

  • Official USDT: An ""offficial"" USDT CashToken run by Tether themselves? Small to medium chance, they did previously run one on SLP which was the BCH precursor to CashTokens, so it's not impossible they decide to do one on CashTokens too, but it's not likely especially in the short term.
  • Unofficial USDT: An unofficial USDT anyone excited about stablecoins and BCH ran themselves? Possible to issue it and get it going technically in about an hour, if someone was willing to run the bank & redemptions. Tooling is still building out, but the MVP necessities already exist in terms of the technology. The real risk & work is needed for someone to be "the bank" in terms of project management and also legal risk and building trust with users among other considerations but the technical foundations are already available today
  • Moria Stablecoin: The Riften Labs team behind Cauldron DEX are working on a stablecoin they've already pre-announced called Moria Money. A full release is yet to be seen.
  • AnyHedge: BCH Bull will at some point tokenise their hedge contracts allowing it to be used as an AnyHedge based stablecoin. Very high chances of a CashTokens stablecoin solution here of some kind on a long enough timeline, but probably not for another year at least.
  • External entrant: There is also an outside chance that as CashTokens & BCH gain momentum, someone else pops up unexpectedly from the cryptocurrency broader industry to provide a solution e.g. USDC decide BCH is building solid foundations and want to be a part of that momentum. Unlikely, but possible, and increasingly likely as traction grows over the next 2-3 years