A Stable Coin, backed by Fiat Money
Stable coin is a term used to describe digital tokens representing stable values. While other tokens, like cryptocurrencies face volatility, stable coins trade at parity with fiat currencies, like the US Dollar or the Euro. In NEXUS, stable coin prices are always pegged at a one-to-one ratio to the fiat currency, which is held in a reserve as collateral. That means a buyer who pays one Euro for a stable coin, has a guaranteed future buy back of one Euro. Stable coins stabilize an otherwise volatile token-ecosystem.
Stable Coins are unlike conventional cryptocurrencies because there is no limited supply or fixed schedule. Instead, the amount of stable coins in a system is directly connected to the amount of deposited fiat money on the escrow bank account and the withdrawal of stable coins from the blockchain ledger.