.Stablecoins are meant to maintain a fixed value, usually $1, providing crypto investors with a location to store money while navigating the extremely volatile digital asset market

.Coinbase released Base, a so-called layer-2 blockchain that seeks to speed up and reduce the cost of transactions on the well-known Ethereum network

.Tether and USD Coin are two examples of stablecoins that are supported by physical assets like cash and bonds

Harare- Given the recent problems with the financial sector, investigating the potential of stablecoins is "more important than ever." Coinbase Global, a US-based cryptocurrency exchange, urged developers building on its new blockchain to concentrate on figuring out how to make stablecoins that track the rate of inflation to maintain purchasing value.

In a recent blog post, Coinbase stated that it is particularly interested in these so-called "flatcoins," adding that given the recent problems with the banking sector, investigating the potential of stablecoins is "more important than ever."Stablecoins are meant to maintain a fixed value, usually $1, providing crypto investors with a location to store money while navigating the extremely volatile digital asset market. A layer of protection against inflation would meet the requirement for a buffer against increased post-pandemic price pressures.

Last month, Coinbase released Base, a so-called layer-2 blockchain that seeks to speed up and reduce the cost of transactions on the well-known Ethereum network. It also disclosed the creation of a fund to aid Base projects in their first stages.

Tether and USD Coin are two examples of stablecoins that are supported by physical assets like cash and bonds. An alternate strategy, TerraUSD, aimed to hold a $1 peg using algorithms and trading incentives, but it utterly failed, upsetting the crypto market and setting off a regulatory frenzy.In the blog article, Coinbase stated that it is open to "other forms of 'flatcoins,' which do not peg to fiat but rather bridge the gap between fiat pegged coins and volatile crypto assets."Additionally, Coinbase encourages developers to concentrate on issues like increasing confidence in users' identities on blockchains and efforts to secure decentralized financial applications.

The Securities & Exchange Commission last week formally announced its intention to pursue an enforcement action in a letter it sent to the largest US cryptocurrency exchange. That was the most recent development in a protracted fight between the watchdog and the industry for digital assets.

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