The European Central Bank published a 30-page cryptocurrency report today. In the Central Bank report, he examined cryptocurrencies that we can call fixedcoin. In the report, the usage areas and advantages of fixedcoins were mentioned. The ECB further emphasized the term “fixedcoin” and explained that the term could be misleading.
stablecoins; They are digital currencies that are indexed to a certain currency or a different asset and thus have a fixed price. Although the name ‘Sabitkoin’ is derived from this fixity in price, the European Central Bank declared that this name could be misleading.
Object to the Stablecoin Term
The Central Bank, examining the current examples of fixedcoin, claimed that these cryptocurrencies are not fixed in themselves. Stating that the term “fixed” used for these crypto coins would be misleading, the European Central Bank shared the following note regarding the structure of these coins:
“” Hardcoin “concept; it can create a perception that that asset can be intrinsic on its own or used as money. However, fixedcoins do not have these properties on their own. These are features that can only be achieved with an appropriate design and risk management model. ”
The European Central Bank, which objects to the “fixedcoin” concept used for these cryptocurrencies, has a different proposal: to change the name. Emphasizing the misleadingness of the “fixed” concept, the ECB suggested moving away from this concept. The European Central Bank’s proposal is to find a name for these cryptocurrencies that will “distinguish them from fiat currencies”. ECB made the following statement in this direction:
“The focus of the new name to be found for the assets called ‘fixedcoin’ should not be ‘stability’.”