In recent months, there have many efforts to create a digital asset known as ‘stablecoin’. In its basic essence, a stablecoin can be thought of as a ‘cryptocurrency‘ that has been designed to be less volatile, so that its value can remain stable over long periods of time. Not only that, a stablecoin also aims to possess “constant buying power” so that it can be used in real life for performing everyday transactions.
From a functional point, we can see that stablecoins can be of much use within countries that are subject to ‘rampant high inflation’ or significant ‘political/financial instability’. They serve to act as a reliable currency where users can store their earnings and plan ahead for their future.
What Is ARC Reserve Currency?
Arc Reserve Currency is being touted online as being the world's “first regulated and asset-backed digital stablecoin”. According to the company’s website, all proceeds that are obtained through the sale of this currency, will be utilized in creating a ring-fenced SPV so that the funds can be allocated to fixed income investments, across multiple currencies. This will be done in order to create a “new currency” that has a stable structure as well as good long term value.
Why Do We Need Such A Currency?
The answer to this question is not that difficult, as we can see that nearly 56% of all nations around the world are subject to constant ‘high inflation rates’, which makes life harder for the average person. In addition to this, existing currencies have many limitations in terms of being influenced by a host of ‘socio-economic factors’ and ‘central government policies’ that can really affect the value of our savings as time goes on.
It has also been observed that many governments of developing countries tend to make use of inflation based strategies for setting base rates. This results in poor returns with relatively high volatility.
How Does Arc Differ From Other Cryptocurrencies?
While digital currencies in themselves might be good investment options, it is clear for everyone to see that assets like Bitcoin and Ethereum have fallen prey to a lot of market speculation. As a result of this, their value seems to be jumping everyday. Thus for daily use, or for making long term investments, putting money into such currencies might not be the best course of action.
Who Is Behind The ARC Reserve Currency Project?
ARC Reserve Currency is the brainchild of Dr Garrick Hileman and Stephen Findlay. According to his online bio, Garrick is a “Research Fellow at the University of Cambridge Judge Business School, with over fifteen years of experience in the private sector with Bank of America, IDG and Allianz.” In addition to this, he has also served as a board member for various private companies which have been involved with cutting-edge “cryptocurrency and distributed ledger based technologies”.
In a similar vein, Stephen has also been in this domain for over 16 years now. He is also the co-founder and CEO of BondMason, a “financial technology platform that enables distribution and administration of capital into loans and other fixed income investments.”
How Can I Purchase Arc Coins?
The ICO opened a few days back on the 14th, and all interested investors can go the website for further details. In terms of making a purchase, users can either buy the coins using crypto assets, or through the use of fiat currencies. According to the official company website, the minimum subscription that is required when using a cryptocurrency is 0.1BTC – 1ETH – or $1,000 equivalent.
When using fiat assets, funds can be transferred for purchase only after an initial ID check is completed. The minimum subscription when using fiat currencies is $25,000. The conversion rate of 1 ARC = $USD1.00
For any other details or queries, users can write to the project team on the email addresses specified on the website.