Cryptocurrencies and the blockchain technology have brought solutions to the payment problems the world has been facing. They have brought an end to the dominance of fiat currency, which is regulated and controlled by central authorities such as governments.
However, traditional cryptocurrencies have a problem of volatility. Within a short time, the value of a cryptocurrency can vary upswing or downswing greatly. Upswings can create high costs, while downswings can erode the value of any digital asset.
The volatility of cryptocurrency has its repercussions. It is the problem of cryptocurrency volatility that has inhibited their mass adoption, the world over. The mainstream business ecosystem, composed of manufacturing, retail and tertiary sectors have not fully adopted cryptocurrencies as a means of payment because of their volatility.
As a result, cryptocurrencies have been mainly adopted by asset speculators. The HUSD (Stcoin cryptocurrency) has overcome the problem of volatility. The coming on board of stable cryptocurrency such as HUSD should lead to the mass adoption of digital currency throughout the world.
What is the HUSD?
The HUSD is an ERC20 token built on the Ethereum blockchain and is pegged at 1.1 ratios with the United States dollar. As you can see, the HUSD is backed by the US dollar. With this technology, the HUSD adopts the stability of the US dollar, yet has the efficiency of the blockchain technology.
Because it is built on the ethereum blockchain, the HUSD has a high degree decentralisation. Like many cryptocurrencies based on the ethereum blockchain, the HUSD also has a high-security level. As a result, it also embodies transparency and trust. By pegging HUSD to the US dollar, there is an aspect of centralization, on which the fiat currency is based. It is this feature that makes it non-volatile and creates confidence and trust in its users.
Thus, when used in the crypto market, its value remains stable, eliminating the upswings and downswings of traditional cryptocurrencies. Stcoin ensures that a secure and stable cryptocurrency is adopted by many users around the world, becoming a cryptocurrency that can be reliably used in trade and commerce.
As everyone can witness, HUSD brings a solution to the problem of volatility.
The impact of the HUSD?
The pegging of the HUSD to the US dollar has resulted in a cryptocurrency with features widely expected of a stable digital asset. As a result, this stable coin will be adopted and used across all borders, by different parties such as businesses, consumers and governments.
This is because people are no longer afraid of sudden fluctuations associated with traditional cryptocurrencies. The flow of trade and commerce is set to improve. Many risk-averse people, especially of mature age, will invest more in digital assets.
Crypto advantage of HUSD
The most significant advantage of Stcoin is its partnership with reputable organisations such as Huobi and Paxos.
For example, Paxos holds a strategic role in the stability of the HUSD. This is because the US dollar reserve backing the HUSD are owned by Paxos Trust Company, which is regulated by New York State Department of Financial Services (NYDFS).
Also, it is Paxmos which manages the “Know Your Customer” (KYC) of Stcoins. This creates high security in the system, as this company is reputable for its high level of oversight and protection. Second, the HUSD is listed on many reputable stock exchanges, such as Huobi, which is one of the leading digital asset trading platforms globally.
Third, the US dollar reserves, backing the HUSD, are audited every month to ensure compliance with the 1.1 ratios. Thus, Stcoin works with third parties to audit the smart contract. There is also constant online transaction monitoring to ensure total compliance with the protocol.
As you can conclude, there is a strong partnership between Stcoin and some high-level crypto-based companies resulting in a very stable and secure cryptocurrency.
There is no doubt that HUSB will take a fair share in the crypto market since it is a stable, safe and trustworthy digital asset. Comparatively, it has low exposure to risks and is redeemable.
All the outstanding features of the HUSB arises from the mutual integration of centralised and decentralised services, resulting in its acceptance in the market as a leading stable cryptocurrency.