Do you know what the Stablecoins are? If not then let me introduce you to them. Stablecoins are a form of crypto coins that are relatively new and are gaining popularity as they aim to tackle the problem of cryptocurrency volatility. Stablecoins are essentially cryptocurrencies that are backed by a traditional currency such as the U.S. dollar. The valuations of stablecoins as the name itself indicates are stable and therefore supposed to be less volatile than other digital currencies.

“Tether” was the first Stablecoin introduced in 2014. The main purpose of the introduction of these coins was aim 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.

The biggest problem of the world of cryptocurrency is stability. Even the world’s most popular cryptocurrency Bitcoin is not stable. Its value increases and decreases dramatically in the passage of a few months. Stablecoins are the latest and so far most reliable solution to that problem.

To increase the circulation of Stablecoins and bring stability to the crypto world. BankX is the fi­rst cryptocurrency that has decided to pay interest for minting a stablecoin. You earn interest for the entire time that it is in circulation. Interest is paid to you when you pay back the stablecoin to the system redeeming your collateral.  Interest is paid in the form of BankX Tokens. 

Apart from that, BankX provides you with BankX Certi­cate of Deposit (BCD) which is like a traditional bank CD but was designed to allow you to earn a much higher yield. A traditional certificate of deposit (CD) is a low-risk savings tool that can boost the amount you earn in interest while keeping your money invested in a relatively safe way.

 By staking your BankX Tokens in a BankX Certi­cate of Deposit, you earn interest in the form of more BankX Tokens. The longer you stake, the more interest you earn. This economic strategy incentivizes the staking/holding of BankX Tokens, reducing the supply, which is designed to allow BankX Tokens to increase in value over time. The BankX tokens can be converted back into the original currency at any time.

The increasing adoption of stablecoins will act as an important catalyst to popularize the use of cryptocurrencies as a mainstream medium of everyday transactions, as well as for other applications.