Stablecoins: Mitigating Volatility
Stablecoins are no doubt the fastest growing sector of the cryptocurrency market. While traditional cryptocurrencies are very volatile and can fluctuate by 10-20 percent in the space of a day, causing massive uncertainty among investors and users, stablecoins are designed to keep their value stable. Even Governments across the globe are realizing the potential of Stablecoins and are developing their own.
Why Gold?
Gold’s value has remained stable for hundreds of years—proving itself as a reliable store of value. While currencies around the world were made of or backed by gold for centuries, today central banks and government policy control monetary systems, which leads to periods of economic growth followed by crashes.
The Kinesis Monetary System
Kinesis is a new monetary system based on gold and silver. It was born out of the Allocated Bullion Exchange (ABX), an electronic institutional exchange for allocated precious metals, present in seven locations placed in the most important gold trading hubs worldwide including Sydney, London, New York, Singapore, Hong Kong, Shanghai (Free Trade Zone), Bangkok, Zurich, Istanbul and Dubai.
The components of the Kinesis Monetary System
- Kinesis Currencies
Digital Gold Currency (KAU), which correspond to 1 gram of physical gold, and Digital Silver Currency (KAG), which correspond to 1 ounce of physical silver. Holders of Kinesis currencies hold full ownership title of allocated gold or silver.
- Bespoke Blockchain Technology
Kinesis has developed a proprietary blockchain network, which was built as a fork of the Stellar Network, in order to achieve speed, scalability and efficiency. On the KBN, Kinesis coins can be saved, sent, spent or traded. Every transaction gets recorded on the blockchain.
- Kinesis Yield
Users of Kinesis coins are rewarded according to their participation and the velocity (rate that money changes hands) of the Kinesis coins. When KAU and KAG are transferred the network collects a 0.45% fee that is accumulated and distributed monthly to the participants in the Kinesis Monetary System. There are four classes of yield: the Minters, the Depositors, the Holders and the Referrers yield.
- Kinesis Currency Exchange (KCX)
This is the digital market where Kinesis coins are created (minted).
- Kinesis Blockchain Exchange (KBE)
On this blockchain exchange Kinesis currencies can be traded with other digital currencies.
- Kinesis Financial Network (KFN)
This is Kinesis financial system. It enables all real life applications of the Kinesis currencies, allowing them to be used for savings or payments, remittances, or money transactions. Through the KFN the Kinesis Debit Card too will be issued, giving the Kinesis users the ability to use Kinesis coins for everyday’s expenditures.
Conclusive remarks
Kinesis gold-backed Stablecoins have the potential to get widespread usage around the world. Through them, people will be able to hold and use real money again, gold.
