Dominyka is a Copywriter at CoinGate. During her career as a copywriter, journalist, and communication specialist, she had the opportunity to handle a wide range of topics, from human rights to lifestyle articles, technology, and now crypto. She sees the importance of new technologies spread and a need for educational and usable content.

Vilius is a seasoned copywriter and bitcoin enthusiast specializing in blockchain and cryptocurrency topics. He's been with CoinGate since 2018, writing blogs, social media content, sales materials, newsletters, FAQs, and more. He's relentless in pursuing knowledge and a better understanding of the crypto industry, which helps him create meaningful and engaging content every day.

The official CoinGate blog for product news, how-to guides, statistics, crypto industry highlights, education, and more. Subscribe for weekly content ...

CoinGate - Your Gateway to Cryptocurrency Payments

A place to find info & news about CoinGate products, services, promotions, plans, ideas and thoughts.

CoinGate Blog

Keep up and get notified about crypto news.

Subscribe to our Newsletter

Subscribe now

These cookies are used to measure, understand, and report on your usage of the service.

First party analytics, third party analytics.

Looking for something more? Try Gift Cards

Cookies are small pieces of data stored on your computer or other devices when websites are loaded in a browser. They ensure a consistent and efficient experience for visitors and perform essential functions such as allowing users to register and remain logged in.

Cookie Policy

Try your luck by using different search parameters instead.

Sorry, but no results were found 😞

Save preferences

Strong partnerships

It’s the best way to effortlessly hear about our new offers and promotions for gift card deals and more!

Follow us on social media!

Buy, Sell or Accept Cryptocurrency with CoinGate

Sign Up and Get Started

These cookies are essential to a website in order to enable a user to move around and to use a websites features, such as remembering information entered on forms when a user moves between pages within a browser session.

Strictly necessary for service.

These cookies may be used to collect information about you when you visit our website and you with interest-based advertising or other targeted content. Third-party cookies are covered by the third parties privacy policy.

Third party advertising cookies.

CoinGate is a Lithuanian-based fintech company founded in 2014. The company offers cryptocurrency payment processing services, as well as trading options.

Start accepting Bitcoin and other cryptocurrency payments on your online or brick & mortar store. Get bank settlements in Euros weekly, or keep the coins.

Accept Dogecoin and 70+ more cryptocurrencies on your online store. Fiat payouts to bank account, customer refunds & more at crypto payment gateway CoinGate.

Accept Ethereum and 70+ more cryptocurrencies on your online store. Fiat payouts to bank account, customer refunds & more at crypto payment gateway CoinGate.

Accept Litecoin and 70+ more cryptocurrencies on your online store. Fiat payouts to bank account, customer refunds & more at crypto payment gateway CoinGate.

Accept Tether and 70+ more cryptocurrencies on your online store. Fiat payouts to bank account, customer refunds & more at crypto payment gateway CoinGate.

Accept TRON and 70+ more cryptocurrencies on your online store. Fiat payouts to bank account, customer refunds & more at crypto payment gateway CoinGate.

Accept XRP and 70+ more cryptocurrencies on your online store. Fiat payouts to bank account, customer refunds & more at crypto payment gateway CoinGate.

Due diligence information comprises the facts about a customer that enables us to assess the extent to which the customer exposes it to a range of risks.

Send cryptocurrency bills via email instantly | Set up subscription plans for your customers | Receive blockchain payments in BTC and 70+ cryptos recurringly.

Find guidelines for CoinGate brand assets and rules. This information is useful for journalists, bloggers, as well as current and potential business partners.

Accept payments or donations on your website with customizable payment buttons—one invoice for +50 crypto assets. Receive Euro settlements to a bank account.

Buy and sell any cryptocurrency, including Bitcoin, Ethereum, Cardano and other securely with CoinGate. Low fees, superior customer support and seamless KYC.

Buy Bitcoin, Ethereum, XRP or other cryptocurrencies with your bank account. A single SEPA transfer straight to your wallet | Sell cryptocurrency for fiat.

Use your VISA/Mastercard credit or debit card to buy Bitcoin, Ethereum, XRP, Nano, TRON, BitTorrent Token (BTT) and other cryptocurrencies safely and fast.

Use any debit or credit card to buy Ethereum (ETH) seamlessly through CoinGate. No registration and account needed. Low fees and fast payout

Spend your mobile balance to buy Bitcoin, Ethereum, XRP, Nano or other cryptocurrencies straight to a wallet | Sell crypto for Euros to a bank account.

UAB DECENTRALIZED (operating the CoinGate) - a private limited liability company, established and operating under the laws of the Republic of Lithuania.

Contact different CoinGate departments directly. Fill in the contact form, and our team members will reach out to you in 24 hours or faster.

Contact our compliance department if you have any issues with your verification process or similar inquiries. Fill out the contact form to get in touch.

Reach out to our marketing department to discuss communication and collaboration ideas. Describe your intentions in this form, and we’ll get back to you soon!

Get in touch with CoinGate sales department if you have questions about the product and integration of crypto payments. Fill out the contact form!

Sell Gift Cards on Coingate shop. Fill out the form to become a provider

Having a problem? Contact our support department, and we’ll solve your inquiries in 24 hours. Use this contact form to describe the issue.

Cookies are small text files that are stored by your browser on your device. We use them to make websites work in a better, more efficient way. Learn more.

Find where to spend Bitcoin online | Learn how to accept crypto payments | Buy bitcoins with SEPA transfer, credit card or mobile credit | Sell BTC for Euros.

Find where to spend Ethereum | Learn how to accept crypto payments | Buy ethers with SEPA transfer, credit card or mobile credit | Sell ETH for Euros.

Find where to spend Litecoin | Learn how to accept crypto payments | Buy litecoins with SEPA transfer, credit card or mobile credit | Sell LTC for Euros.

Find where to spend NANO | Learn how to accept crypto payments | Buy NANO with SEPA transfer, credit card or mobile credit | Sell NANO for Euros.

Find where to spend XRP | Learn how to accept crypto payments | Buy XRP with SEPA transfer, credit card or mobile credit | Sell XRP for Euros.

Try out how Coingate invoice works in the selection of our example shops.

Please read the document carefully. It shall become legally binding upon marking “ACCEPT TERMS AND CONDITIONS” checkbox and clicking “CREATE ACCOUNT” button.

Maximize your gift card sales with our B2B marketplace. List your company's gift cards and reach a wider audience of potential buyers. Join now and grow your business

Get the best deals on puchasing gift cards in bulk from top brands. Perfect for resale, corporate gifts, and more.

Buy gift cards with Bitcoin from more than 2000+ brands. Bitcoin, Litecoin, Ethereum, XRP & many more cryptocurrencies accepted | Instant Email delivery

Buy and receive ecommerce gift cards for Amazon, eBay & other websites that allow you to shop for anything. Pay with BTC, LTC & 10+ cryptos, use instantly.

Our wide selection of entertainment gift cards will cover all your needs!  Cinema, concerts, sport events and endless content - it's all here!

If you strive to be up-to-date with the latest video game releases, want to be a pro gamer, or looking for new games, check out our gaming gift cards category. 

Explore all the tastes in the world with CoinGate Restaurants gift cards. Celebrate, laugh, talk and make memories over a delicious plate of your favorite food.

Step up your sports game or even discover a new active hobby. Buy a Sports gift card for any active life enthusiast. From clothes and gear to home gym and more.

CoinGate travel gift cards will let you plan the whole holidays using only cryptocurrencies. Fly, rent a car, find bus tickets and stays with travel gift cards.

2000+ Gift Cards For Crypto | Amazon, eBay, iTunes, Microsoft, Starbucks eGifts And Vouchers | Buy With Bitcoin, Litecoin, Ether, XRP And +70 Crypto Assets.

Pay for Gift Cards with cryptocurrency like BTC, ETH, LTC, NANO, DOGE, TRX and others, get them delivered straight to you or your friend via email, instantly. Bitcoin & Litecoin Lightning Network supported.

CoinGate | Buy or sell Bitcoin, XRP, Nano and other cryptocurrencies for Euros | Accept crypto payments in +50 coins risk-free with settlements to fiat!

Integrate crypto payments using several CoinGate integration methods. API, Plugins, Button and billing solution - all allowing to collect crypto payments seamlessly. 

Bitcoin and Litecoin (micro) transactions are faster and cost less with Lightning Network. No need to set up any nodes! Sign up and get started right away.

Implement Your Crypto Asset on CoinGate Payment Gateway!

Please make sure that you fully understand all potential risks relating to Virtual Assets before taking advantage of CoinGate services.

CoinGate company announcements, news, featured press releases, as well as press kit and contacts for journalists and other media representatives.

Start accepting Bitcoin (BTC), Litecoin (LTC), Ether (ETH) and +70 other cryptocurrency payments on your OpenCart website with CoinGate bitcoin plugin.

Browse the vast selection of electronic gift cards for payment cards such as Mastercard, Visa and many more. Additionally buy mobile refill gift cards - Vodafone, T-Mobile, Orange, AT&T and many more. All gift cards are available to buy with cryptocurrencies only, instantly delivered by email.

Use plugins for WooCommerce, Magento, PrestaShop, OpenCart, WHMCS and other websites to accept payments in Bitcoin, XRP and +50 other crypto assets.

Use Point-of-Sale app for Android and iOS or web version to accept cryptocurrency payments anywhere. Get settlements to your bank in EUR or keep what you get.

Accept Bitcoin (BTC), Litecoin (LTC), Ether (ETH) and +70 other cryptocurrency payments on your PrestaShop site with CoinGate module. 

CoinGate charges a standard 1% fee for trader operations and 1% flat fee for merchant payment processing services. Additional services have different costs.

CoinGate follows the requirements of the European Union General Data Protection Regulation (GDPR) and other laws protecting information about you.

The number of customers that pay with bitcoin depends on how well you present it as an available payment option. Start with the Bitcoin logo on your website!

Introduce new users or businesses to CoinGate services and earn Euros, Bitcoins, USDT | Get 1% reward from each completed order | Sign up to start building passive income!

Accept payments in Bitcoin and 70+ other cryptocurrencies on your website by adding a new payment method to your store’s checkout through Shopware.

Wondering who accepts bitcoin? Visit CoinGate's Bitcoin merchant directory to find hundreds of online shops that accept payments in Bitcoin, and other crypto

Want to support Ukraine? Donate Crypto directly to the National Bank of Ukraine. CoinGate will process all payments with 0% fees.

Check whether a particular CoinGate service is available in your country at the moment. The list of supported countries might change over time.

Find information about what cryptocurrencies are available to use for different services such as accepting crypto payments, buying or selling crypto assets, and more.

Start accepting bitcoin, litecoin, ether & other crypto payments with an official WHMCS plugin powered by CoinGate. 

Accept payments in Bitcoin and 70+ other cryptocurrencies on your Wix website by adding a new payment method to your store’s checkout.

Accept Bitcoin (BTC), Litecoin (LTC), Ether (ETH) and +70 other cryptocurrency payments using an official WooCommerce (WordPress) plugin, powered by CoinGate

404 - CoinGate

About Us | Milestones And Achievements - CoinGate

Accept Bitcoin and other Cryptocurrency Payments | CoinGate

Accept Dogecoin (DOGE) payments | CoinGate

Accept Ethereum (ETH) payments | CoinGate

Accept Litecoin (LTC) payments | CoinGate

Accept Tether (USDT) payments | CoinGate

Accept TRON (TRX) payments | CoinGate

Accept XRP payments | CoinGate

AML/CTF Policy - CoinGate

Email Billing | Instant & Recurring Crypto Bill - CoinGate

Brand assets | Info For Media And Partners | News - CoinGate

Payment Buttons for Bitcoin, Nano, Ether, XRP & More - CoinGate

Buy and Sell Cryptocurrency Online | CoinGate

Buy Bitcoin & Other Crypto With Bank Account - CoinGate

Buy Bitcoin, Ethereum With Credit or Debit Card - CoinGate

Buy Ethereum (ETH) with Credit Card | CoinGate

Buy Bitcoin, Litecoin, XRP & More With Mobile - CoinGate

Career at CoinGate

Data Processing Agreement | AMC/CTF Policy - CoinGate

Contact Forms For All Departments - CoinGate

Become Gift Cards reseller

Compliance Department Contact Page - CoinGate

Press (Marketing) Department Contact Page - CoinGate

Sales Department Contact Page - CoinGate

Support Department Contact Page - CoinGate

Cookie Policy - CoinGate

Learn about Bitcoin cryptocurrency - CoinGate

Learn about Ethereum cryptocurrency - CoinGate

Learn about Litecoin cryptocurrency - CoinGate

Learn about NANO cryptocurrency - CoinGate

Learn about XRP cryptocurrency - CoinGate

Disclaimer for Purchasers - CoinGate

CoinGate example shops

Cryptocurrency Exchange rates in real time | CoinGate

Gift cards Terms and Conditions - CoinGate

List your GIft Card on Marketplace | CoinGate

Buy Gift Cards in Wholesale | CoinGate

Gift Cards for Bitcoin, Litecoin, XRP & More - CoinGate

Ecommerce gift cards | CoinGate


Entertainment gift cards | CoinGate

Gaming gift cards | CoinGate

Restaurants gift cards | CoinGate

Sports gift cards | CoinGate

Travel gift cards | CoinGate

Buy Gift Cards With Bitcoin & Other Cryptocurrencies - CoinGate

Checkout - CoinGate

Order details

Buy Gift Cards, pay with Bitcoin & other crypto currency

Top Bitcoin and other Crypto Payment Processor | CoinGate

Cryptocurrency integration methods |  CoinGate

Collect Bitcoin payments via Lightning Network - CoinGate

Terms and Conditions for Merchants - CoinGate

News & Media Info | Cryptocurrency Payment Gateway - CoinGate

Accept Crypto Payments with OpenCart bitcoin plugin | CoinGate

Crypto Payment Plugins for eCommerce Platforms - CoinGate

Point-of-Sale (PoS) App for Bitcoin & Other Coins - CoinGate

Accept Crypto Payments with PrestaShop Module | CoinGate

Pricing & Service Fees - CoinGate

Privacy Policy - CoinGate

Learn How To Promote Your Crypto Payment Method - CoinGate

Purchaser terms and conditions - CoinGate

Terms and Conditions of Referral Program - CoinGate

Earn Rewards in Euros, Bitcoins, USDT | CoinGate Referral Program - CoinGate

Risk Warning Disclaimer - CoinGate

Accept Bitcoin and other Crypto Payments With Shopware – CoinGate

200+ places that accept Bitcoin (BTC) payments

Support Ukraine | CoinGate

Supported Cryptocurrencies For Each Service - CoinGate

Supported Countries For Each Service - CoinGate 

Terms and Conditions - CoinGate

Terms and Conditions for Traders

Terms and Conditions for Merchants from the United States of America

Terms and Conditions for Traders from the United States of America

User terms and conditions - CoinGate

Accept Crypto Payments with WHMCS Plugin | CoinGate

Accept Bitcoin and other Crypto Payments With Wix – CoinGate

Accept Crypto Payments with WooCoommerce (WordPress) Plugin | CoinGate

<a href="https://sweepwidget.com/c/65145-0trvc82o">Join the Christmas giveaway of €1000!</a>

On February 1st, 2019, we launched XRP payment processing service for our merchants. And, after a few months, we noticed something we didn’t expect to witness.

Will XRP become the next go-to crypto for online shopping?

It is no secret that cryptocurrencies aren’t perfect just yet. Major inconveniences that the most vocal sceptics tend to bring up are unpredictable volatility, high fees and long transaction confirmations, especially when the topic revolves around Bitcoin. &nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" width="1024" height="530" src="https://wp-blog-assets.coingate.com/2022/04/82b600af-stablecoins_blog-1024x530.png" alt="Stablecoins explained" class="wp-image-5487" srcset="https://wp-blog-assets.coingate.com/2022/04/82b600af-stablecoins_blog-1024x530.png 1024w, https://wp-blog-assets.coingate.com/2022/04/82b600af-stablecoins_blog-300x155.png 300w, https://wp-blog-assets.coingate.com/2022/04/82b600af-stablecoins_blog-150x78.png 150w, https://wp-blog-assets.coingate.com/2022/04/82b600af-stablecoins_blog-768x397.png 768w, https://wp-blog-assets.coingate.com/2022/04/82b600af-stablecoins_blog-1536x794.png 1536w, https://wp-blog-assets.coingate.com/2022/04/82b600af-stablecoins_blog.png 1856w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



Discussions about Bitcoin and other proof-of-work cryptocurrencies struggling to serve as a medium of exchange has certainly discouraged many businesses to incorporate blockchain payments into their financial operations. However, new ideas emerged, and stablecoins were introduced as a means to deal with the aforementioned issues and improve on existing blockchain-based solutions.



In essence, stablecoin is precisely what it sounds like – a crypto asset that always maintains stable value, yet retains all the properties that make cryptocurrencies tick as they do.&nbsp;



<h2>So, how do stablecoins maintain the same course of value?</h2>



The way it’s achieved is by collateralizing other real-world assets and pairing the stablecoin’s value to them. As such, the value of stablecoins should never exceed the collateral in reserve, and therefore can (in most cases) be exchanged to the assets they’re pegged to at any time.&nbsp;



Also, it’s important to know that stablecoins are nor minable neither pre-mined. Instead, their total supply is always changing and reacting to the movements in the market. In order to control inflation, coins are burned when exchanged to the pegged asset. Likewise, when an asset is collateralized, newly created stablecoins enter the market.&nbsp;



Such an architecture allows traders, businesses and casual individuals to benefit from the properties of traditional digital currencies (e.g., low cost, high-speed, secure transactions) while eliminating the issue of highly volatile nature that most cryptocurrencies inherit.



Several different types of stablecoins currently exist. Even though the underlying principle is the same, the main difference is how a particular stablecoin maintains its value.&nbsp;



<h2>Fiat-backed stablecoins </h2>



As the name suggests, fiat-backed stablecoins are pegged to a government-issued currency like US dollars. That means the circulating supply of dollar-pegged stablecoins like Tether (USDT), TrueUSD (TUSD) or USD Coin (USDC) should always be covered at 1:1 ratio with real US dollars.



<figure class="wp-block-image size-large"><img loading="lazy" width="1024" height="654" src="https://wp-blog-assets.coingate.com/2022/04/6d9e8f33-stablecoins_blog_fiat-1024x654.png" alt="Pros and cons of fiat backed stablecoins" class="wp-image-5488" srcset="https://wp-blog-assets.coingate.com/2022/04/6d9e8f33-stablecoins_blog_fiat-1024x654.png 1024w, https://wp-blog-assets.coingate.com/2022/04/6d9e8f33-stablecoins_blog_fiat-300x192.png 300w, https://wp-blog-assets.coingate.com/2022/04/6d9e8f33-stablecoins_blog_fiat-150x96.png 150w, https://wp-blog-assets.coingate.com/2022/04/6d9e8f33-stablecoins_blog_fiat-768x491.png 768w, https://wp-blog-assets.coingate.com/2022/04/6d9e8f33-stablecoins_blog_fiat-1536x982.png 1536w, https://wp-blog-assets.coingate.com/2022/04/6d9e8f33-stablecoins_blog_fiat.png 1856w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



If fiat-pegged stablecoin ends up exchanged back to the US dollar, then that coin is burned out of existence. Likewise, by collateralizing fiat, you’d create and add more stablecoins to the total supply.&nbsp;



However, since fiat-backed stablecoin is an off-chain solution, and its collateral is held somewhere outside of the blockchain, it requires centralized governance and external audits to function properly and for a custodian to be deemed trustworthy. Although it sounds counter-intuitive if we agree to strive for decentralization, it is the most simple and easiest way to preserve strong stability.



This type of coin could also be pegged to a whole basket of fiat currencies. For example, <a class="keychainify-checked" style="color: #000000;" href="https://libra.org/en-US/" target="_blank" rel="noopener">Libra</a> developed by Facebook intends to be just that – a stablecoin backed with several fiat currencies at once.&nbsp;



As far as we know, Libra would be made out of 50% United States dollar, 18% Euro, 14% Japanese yen, 11% Pound sterling and 7% Singapore dollar. However, such a massive project already put all lawmakers across the world on their toes, so we’re yet to see how it plays out.



<h2>Stablecoins backed by commodities</h2>



Unlike other types of stablecoins, commodity-collateralized stablecoins are pegged to the value of physical things like precious metals, oil and, theoretically, everything else. Since holders of such coins have recourse to a tangible asset that is backed by real value, they can (usually) use them to redeem these commodities at any time.&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" width="1024" height="654" src="https://wp-blog-assets.coingate.com/2022/04/60a2a4a3-stablecoins_blog_commodity-1024x654.png" alt="Commodity-backed stablecoins: pros and cons" class="wp-image-5489" srcset="https://wp-blog-assets.coingate.com/2022/04/60a2a4a3-stablecoins_blog_commodity-1024x654.png 1024w, https://wp-blog-assets.coingate.com/2022/04/60a2a4a3-stablecoins_blog_commodity-300x192.png 300w, https://wp-blog-assets.coingate.com/2022/04/60a2a4a3-stablecoins_blog_commodity-150x96.png 150w, https://wp-blog-assets.coingate.com/2022/04/60a2a4a3-stablecoins_blog_commodity-768x491.png 768w, https://wp-blog-assets.coingate.com/2022/04/60a2a4a3-stablecoins_blog_commodity-1536x982.png 1536w, https://wp-blog-assets.coingate.com/2022/04/60a2a4a3-stablecoins_blog_commodity.png 1856w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



There are several examples of such stablecoins, for example, Digix Gold Token <a class="keychainify-checked" style="color: #000000;" href="https://coinmarketcap.com/currencies/digix-gold-token/" target="_blank" rel="noopener">(DGX)</a>, a gold-backed stablecoin where one coin represents 1 gram of gold that you can redeem at the physical location.&nbsp;



In fact, even governments attempt to issue their own commodity-backed coins, just like Venezuela did.&nbsp;



In February 2018, Venezuela launched its oil-backed digital asset called <a class="keychainify-checked" style="color: #ff6600;" href="https://en.wikipedia.org/wiki/Petro_(cryptocurrency)" target="_blank" rel="noopener">Petro</a>. According to the officials, each coin represents a barrel of oil owned by the country. Eventually, Venezuela plans to issue even more stablecoins which would be backed by the country’s gold and mineral reserves.



<h2>Cryptocurrency-backed stablecoins</h2>



Less popular and more inflatable stablecoins are backed by nothing else but cryptocurrencies themselves. The key property of crypto-backed stablecoins is that such stablecoins require much higher collateral of 200% and more.&nbsp;



It is necessary in case the cryptocurrency which maintains the value of a stablecoin significantly drops in value. High collateral covers the stablecoin’s peg if such a situation arises.



<figure class="wp-block-image size-large"><img loading="lazy" width="1024" height="654" src="https://wp-blog-assets.coingate.com/2022/04/c62b1be6-stablecoins_blog_crypto-1024x654.png" alt="Crypto-backed stablecoins: pros and cons" class="wp-image-5490" srcset="https://wp-blog-assets.coingate.com/2022/04/c62b1be6-stablecoins_blog_crypto-1024x654.png 1024w, https://wp-blog-assets.coingate.com/2022/04/c62b1be6-stablecoins_blog_crypto-300x192.png 300w, https://wp-blog-assets.coingate.com/2022/04/c62b1be6-stablecoins_blog_crypto-150x96.png 150w, https://wp-blog-assets.coingate.com/2022/04/c62b1be6-stablecoins_blog_crypto-768x491.png 768w, https://wp-blog-assets.coingate.com/2022/04/c62b1be6-stablecoins_blog_crypto-1536x982.png 1536w, https://wp-blog-assets.coingate.com/2022/04/c62b1be6-stablecoins_blog_crypto.png 1856w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



On the other hand, crypto-backed stablecoins are on-chain solutions. That means they are fully decentralized and transparent for everyone to see what’s under the hood, also provide liquidity on-demand.



<a class="keychainify-checked" style="color: #000000;" href="https://coinmarketcap.com/currencies/dai/">Dai</a> is one of them. Since its creation, it was an Ether-backed stablecoin soft-pegged to US dollar, meaning that it maintained the course of US dollar by collateralizing Ether. If you wanted to create Dai, you would have to deposit Ether into a “collateralized debt position,” which is essentially a smart contract.



However, with a recent upgrade, Dai can now be collateralized with multiple digital assets. A previous, single collateral version of Dai is now called Sai and is referred to as a first-generation stablecoin.



<h2>Stablecoins not backed by anything (Seigniorage-style)</h2>



There is one more type of stablecoins that we didn’t discuss yet, and that’s so-called Seigniorage-style or algorithmic coins which are not backed by anything at all.&nbsp;&nbsp;



Seigniorage-style coins are governed with the help of complex algorithms. In simple words, if the total demand for the crypto assets increases, new supply of stablecoins are automatically created and vice versa, as a result bringing the price back to predetermined stable levels.



Even though there are no good examples of perfectly functioning Seigniorage-style stablecoins, they do get attention from curious crypto communities. Until now, the <a class="keychainify-checked" style="color: #000000;" href="https://www.basis.io/" target="_blank" rel="noopener">Basis</a> project showed the most potential to create a functioning algorithmic stablecoin. However, the project had to be shut down due to several reasons focused on complying with US securities regulation.&nbsp;



<h2>Are stablecoins the future of cryptocurrencies?</h2>



Stablecoins are relatively new in the blockchain industry, and we are yet to explore their full potential and use cases. Even though we already can reap the benefits of currently operating stablecoins, we will surely see a broader variety of them emerging in the upcoming years.

Price volatility, high fees and long transaction confirmations discourage businesses to adopt crypto payments, but can stablecoins fix that?

Stablecoins explained: what are they and how do they work? | CoinGate

Stablecoins explained: what are they and how do they work?

Every owner of cryptocurrencies needs a wallet, but how to choose the right one(s)? There are so many various types of wallets it’s not always clear what’s the difference between them or easy to decide which one will suit your needs the best.

Stablecoins explained: what are they and how do they work?

Subscribe now

Litecoin Payments Report 2022: Usage Metrics In eCommerce

Leveraging Crypto to Serve the Privacy-Conscious & Unbanked

Crypto: Universal Payment Method For Service Simplification

Subscribe to our Newsletter