Stablecoins set to the US dollar face centralization and security problems. In response, interest increases in other stablecoins supported by other currencies.
For a long time, the most popular stablecoins, such as Tether (USDT) and USD Coin (USDC), were linked to the US dollar. But these coins at point in dollars are not perfect. Many are counting on a single company to hold the real dollars that support digital parts.
This can lead to questions about confidence and openness. For example, some companies can even freeze funds or prohibit certain digital addresses, which seems a little too “centralized” for a world that aims to be “decentralized”. Even popular decentralized stablecoins, such as DAI, often depend on external information sources called “oracles”. The problem? These oracles can sometimes be deceived, causing large losses, as seen in the $ 182 million hacking on Beanstalk farms in 2022.
The rise of non -USD stablescoins: a new wave of digital money
Due to these challenges, there is a growing buzz around a new type of stablecoin: those linked to currencies other that the US dollar. These “non -USD” stables are gaining importance, motivated by local economic needs, new regulations and the desire for stability that corresponds to money from different countries. If you live in Europe, you may prefer a stablecoin fixed to the euro; In the Middle East, perhaps a linked to the United Arab Emirates. This change makes the Stablescoin market more diverse and more relevant worldwide.
A good example of a leader in this new wave of innovation is Frankencoin (ZCHF). Built on the Ethereum blockchain and is designed to follow the value of the famous and highly stable Swiss Franc (CHF), Frankencoin aims to solve the problems of older stabbed by being really decentralized and transparent, allowing users to create their own Swiss francs supported by collateral.
But Frankencoin Is it not the only player in this evolutionary space. Several other non -USD stablecoins make their mark:
- TETHER UAE Dirham Stablecoin (Xaed): Launched in 2024 by Tether, the same company behind the USDT, Xaed is directly fixed to the United Arab Emirates Dirham. It is designed to meet the growing demand for digital money in the Middle East, which facilitates digital transactions in this region.
- Euro Stablecoin of DWS: This year should be launched this year, this Stablecoin at EURO is developed by DWS, part of the Deutsche Bank, as well as other big names. It will be regulated by the financial authority of Germany, Bafin, ensuring that it follows the new rules of cryptography (Mica) of Europe. This aims to stimulate the use of stablescoin in Euro across Europe for everyday institutions and users.
- NZDS (neo-Zeland dollar stablecoin): This stablecoin is already operational, Armande 1: 1 at the New Zealand dollar. It is increasingly used on decentralized exchanges and offers stability to crypto users in New Zealand and beyond.
- Digital ruble: Although it is not a private stablecoin, the digital currency of the Central Bank of Russia (CBDC), the digital ruble, should be widely used by 2025-2027. It is a digital version of the Russian ruble, supported by the state, showing how governments are also heading for digital money.
- BRZ (Brazilian Real Stablecoin): This stable, fixed to the real Brazilian, is already well known and continues to grow. It helps users in Latin America to engage in DEFI and simplifies money transfers through borders.
These examples clearly show a global trend towards stablecoins which are not linked to the US dollar, driven by regional needs and a more localized desire for digital money. The StableCoin market is expected to reach a huge $ 400 billion by the end of 2025, daily payment volumes reaching $ 300 billion, highlighting enormous growth in this area.
The power of the Swiss franc: a foundation for stability
So why are these new stablecoins so attractive? And why is a currency like the Swiss franc is such a good choice for a stablecoin ankle? The Swiss Franc (CHF) is famous worldwide for its solid rock stability. This comes from several key factors:
- Stable price: Switzerland has always maintained inflation (the rate at which money loses its purchasing power) very low, generally about 1 to 2% each year. This means that the franc has its value over time.
- Refuge status: In the period of global economic or political problems, people often flock to the Swiss franc because Switzerland is politically neutral and has a very strong and reliable economy.
- Meticious management: The Swiss National Bank (SNB) carefully manages the value of the franc through intelligent monetary policies, ensuring that it remains stable and competitive.
- Strong economics and politics: Switzerland has a robust economy, a low national debt and a stable political system based on direct democracy. All these factors strengthen confidence and make the franc strong.
- Financial center: Swiss banks are known to be very stable and secure, attracting a lot of money from around the world, which still stimulates demand for the Swiss franc.
These qualities make the Swiss franc a perfect plan for digital stability, naturally attracting both traditional investors and the fast -growing market for stablescoin.
Explore a different approach to stablecoins
Based on the inherent stability of the Swiss franc, Frankencoin introduces an approach based on blockchain for the creation of Stablecoin. Its design includes several features that differentiate it from many existing models:
Regardless of external oracles: Unlike many decentralized stablecoins, such as Makerdao DAI, which are based on external “oracles” for real world data, Frankencoin aims at self -sufficiency. It uses a single internal auction system to determine the value of the guarantees during liquidation events. This mechanism is designed to reduce the vulnerability of the system to oracle handling attacks and potentially allows a greater variety of types of guarantee, provided they can be effectively appreciated by these auctions.
Flash guaranteed by the user: Similar to other stablecoin guaranteed systems such as Makerdao or Liquiew, Frankencoin allows users to generate a new ZCHF by depositing various digital assets in warranty. This process, often called “strike”, allows users to create their own stablecoins against their assets, rather than receiving a loan from a central entity. The entire straw process is automated and transparent on the Ethereum blockchain, with a modest sum contributing to the internal reserves of the system.
Veto -based governance: Frankencoin governance system deviates from common models of proposal and voting observed in many other DEFI protocols. It works mainly on a “veto” mechanism. Holders of Frankencoin Pool shares (FPS) can, individually or by pooling resources, gaining power to block proposals if they collectively hold at least 2% of voting power. This voting power is linked to both the quantity of FPS held and the duration that they have been owned, encouraging the long -term commitment and aimed at allowing collective influence on the evolution of the system.
Multilayer stability mechanisms: Maintaining a stable PEG is essential for any stablecoin. Frankencoin addresses this through a multilayer reserve system, similar to the number of other stables guaranteed manage risks. These reservations include funds from individual users that strike ZCHF and the capital contributed by FPS holders, which acts similarly to the equity of a bank. This structure is intended to absorb potential losses and to support Frankencoin’s sweet ankle to the Swiss franc, even if the value of the collateral support undergoes significant fluctuations.
The future of stablecoins
The transition to non-USD stablecoins is a clear sign that the world of cryptocurrency matures and becomes more global. With projects like Frankencoin opening the way, offering innovative solutions that prioritize decentralization, transparency and stability of the real world, the future of digital money seems more diversified and resilient than ever. These stable -coxins do not only concern digital payments; It involves empowering individuals and building a more robust financial system that reflects global economic needs.
