Kurt Farrugia, product leader of a family of stablecoins, Samecoin, spoke to me recently in order to share his expert knowledge by answering some of the questions about the stablecoin sector in the crypto niche.
1) What makes stablecoins different from regular cryptocurrencies?
Stablecoins are supposed to hold their value—rather than “moon” like other coins. Crypto has been a huge investment vehicle, and it’s helped transform my finances—but BTC, ETH, and other altcoins simply aren’t stable currencies. They’re investments. With stablecoins, you can actually start spending digital currencies on all sorts of things without having to worry your transaction’s value will be worth a completely different amount tomorrow.
2) Do you consider stablecoins a better version of crypto and which is the most important?
Stablecoins aren’t “better”—but they are different. There’s a place for BTC and all those other cryptocurrencies, but in order for people to start using crypto for its original intended use, and be used every day for normal purchases, stablecoins are an important step towards that future.
3) How do you respond to claims that stablecoins are not as good as BTC due to the element of centralization?
It depends on what you’re looking for. So far, stablecoins have been centralized as they are usually backed by a reserve made up of bank accounts or assets held by companies or individuals. However, new decentralized stablecoins are emerging, some of which are fully decentralized, as all operations and reserves can be verified by anyone by simply checking the smart contract and the value locked in it.
4) Are all stablecoins backed by fiat, or are there fiat-independent ones?
There are loads of different types of stablecoins. Some are backed by fiat, while others are backed by other cryptocurrencies or even commodities like gold. In some cases, they are backed by other stablecoins in the market, with algorithms and operations that help distribute the risk and volatility.
5) Which are better in your opinion?
Instead of being “backed” by an individual fiat or individual asset, the best stablecoins are pegged to a basket of assets to help ensure absolute stability. These can be tied to a fiat coin value, without being backed by that fiat’s own reserves (yes, it’s doable with the emerging technologies) and are more resilient to fluctuations. Most importantly, it is fully transparent and can be fully decentralized. With DeFi integrations, what can get better?
6) Do you think that stablecoins might push cryptos like Bitcoin and Ethereum out of business, eventually?
Probably not. But there’s absolutely huge space for growth in the stablecoin world. BTC and ETH are probably here to stay, but they’re mostly seen as investments rather than currency you can actually spend on everyday needs.
7) Stablecoins are facing some problems of their own. Can you tell us about the biggest issues?
There have been a few regulatory issues with some of the biggest stablecoins. There’s also a lack of transparency in some of the industry, and questions still remain when it comes to some stablecoins like USDT.
The objective should be to bring a stablecoin system that is focused on adoption, integrating with various websites, applications, services, and eventually also your local supermarkets or restaurants, bringing real-world utility.
8) Do you think that these problems are preventing them from becoming more adopted?
Absolutely, people need a stablecoin they can trust. Unfortunately, crypto has not been as widely adopted as we expected in our everyday lives. The vast majority of people still do not know how to buy crypto and where and how to use it. We need it simplified.
9) Let’s talk about Samecoin. How is the project contributing to the niche?
Samecoin is an entire ecosystem, made up of cryptocurrencies and the products which will drive up their adoption. This is the advantage of Samecoin; it’s how we focus on the user experience, translating and transforming the complexities of crypto for the billions of people who know about crypto but are too afraid to get to know it and use it.
We hope this will make Samecoin one of the first to achieve adoption in that untapped market.
10) How can Samecoin solve the problems that stablecoins are struggling with?
Samecoin is a completely transparent ecosystem that anyone can investigate, unlike most others in the stablecoin world. It also helps bring DeFi and stablecoins to the masses with a spendable currency that’s easy to understand and easy to use.
That’s why I’m passionate about Samecoin. We are building an ecosystem of cryptocurrencies and products that simplify crypto for the everyday person, without taking the shortcuts and risks of centralization.
SameUSD, and SameEuro are the stable and decentralized cryptocurrencies that people and businesses have been waiting for. The asset reserves are fully transparent and visible in the smart contracts. They have been audited, verified, and passed by Certik.
SamePay and SameID on the other hand, will be the payments and accounts products that will help drive up adoption, by giving people and businesses easy-to-use products that bring crypto into their lives.
Support for businesses and merchants helps create a growing ecosystem of payment solutions that can make crypto’s vision finally real.
Upon launch on the 8th of June, 2021, Samecoin beta app amassed $2 million TVL within the first hour.
Disclosure: The author does not have any vested interest in the projects mentioned above.
Disclaimer: The opinions in this article belong to the author alone. Nothing in this article constitutes investment advice. Please conduct your own thorough research before making any investment decisions.
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