‘Basis,’ Andreessen Horowitz-backed Stablecoin project, Will be Shutting Down

I have always maintained that “Stablecoin” is a myth, a wannabe but never-will-be crossbreed between crypto and fiat.

First of all how do you define “stability”? Stability is relative, you have to compare something with something else to come to that conclusion.

Secondly, what is your base? If your base is USD then USD is stable, if your base is SGD then SGD is stable, if your base is HKD then HKD is stable…you get the idea. Hence if your base is Bolivars then USD is UNSTABLE.

In fact a more appropriate term for “Stablecoin” should be “Fiat-based coin” and since a centralised control fiat can only be issued by a government central bank then ONLY they can do it.

So anyone who ever fantasize about “Stablecoins” should forget about it. Even if there is a comparatively stable way of doing it, it’s definitely not the ways they are doing it now.

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