BankX Pays Interest For Minting A Stablecoin

BankX Stablecoin

Stablecoins are a form of cryptocurrency that are relatively new and are gaining popularity as they solve the problem of volatility.  Stablecoins are typically cryptocurrencies that are backed by a traditional fiat currency such as the U.S. dollar.  The valuations of stablecoins, as the name indicates, are stable and therefore supposed to be less volatile than other digital currencies.  Stablecoins are also be used for cross-border payments and are a “neutral” position for cryptocurrency traders so they don’t have to trade into a fiat currency when they exit a cryptocurrency position.

“Tether” was the first stablecoin introduced in 2014. The main purpose was to eliminate price volatility.  A stablecoin, if successful, would be effective as a store of value and a medium of exchange, just like a fiat currency, while retaining the qualities of a cryptocurrency like decentralization and bankless transactions.  However, with the rise in money printing of the U.S. dollar, stablecoins backed by USD may not be so “stable”.

Cryptocurrency traders rely on stablecoins to easily remain in the digital currency relm while retaining their neutral position until the next trade.  Nearly 75% of all cryptocurrency trades involve a stablecoin.

BankX is the fi­rst cryptocurrency that pays interest for minting a stablecoin, called XSD.  You earn interest for the entire time that it is in circulation.  XSD is backed by Ethereum and the BankX Token.  The system is fully decentralized and trustless.  Interest is paid to you, in the form of BankX Tokens, when you pay back the stablecoin to redeem your collateral.

In addition, BankX provides you with the BankX Certifi­cate of Deposit (BCD) which is like a traditional bank CD but was designed to allow you to earn a much higher yield.  By staking BankX Tokens in the BankX Certi­ficate of Deposit, you earn interest in the form of more BankX Tokens. The longer you stake, the more interest you earn.  The more you stake, the more interest you earn.  This economic strategy, inflation paying interest for staking, incentivizes the staking of BankX Tokens, reducing the supply, which is designed to allow BankX Tokens to increase in value over time.  Staking always outpaces the interest paid by inflating the BankX Token.

A fully decentralized, trustless stablecoin that pays interest is the next step in cryptocurrency to remove banks from the financial system.

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