Shiba Inu (SHIB) Team is getting closer to launching their stable coin.
As part of efforts to prove it is not a memecoin, Shiba Inu (SHIB) is eagerly working relentlessly to release its first-ever stablecoin called SHI.
The stablecoin, which was first mentioned in May 2021 by Shiba Inu founder Ryoshi in a blog post, will launch on both Shibarium layer 2 and the Ethereum blockchain.
SHI, as described in the blog post, is a global stablecoin that will be used as a payment method and a store of value.
Stablecoins are usually backed by a stable asset, especially a fiat currency. A closer look at the top three stablecoins in the global cryptocurrency ranking indicates that the digital currencies are backed by the United States Dollar on a 1:1 ratio.
What’s New for SHI
Interestingly, the team behind Shiba Inu, who considers SHI as a stablecoin that preserves value said the cryptocurrency would be pegged to $0.01.
Based on this, stablecoin developers need to hold reserves or collateral that backs the payment method, in a secured storage to protect its value from suffering the same issue of volatility that keeps rocking the cryptocurrency market.
It is not clear how the Shiba Inu team plans on maintaining the stability of SHI. However, Gossip Shib, an enthusiast of the dog-themed project, disclosed on Twitter today that there are several available techniques to consider when developing the stablecoin.
At the time of writing this line, there is no specific date on when the Shiba Inu team plans to officially launch the stablecoin, but the cryptocurrency project’s founder said:
“Teams are working on some tests before we launch the official SHI.”
Meanwhile, in contrast to the belief that LEASH would be the governance token of all Shiba Inu-related projects, it is still not determined that SHI will be included among the SHIB projects to be governed by LEASH.
Ryoshi says: “The end goal is that SHI (operating both on ETH and the Shibarium) becomes a global stable currency that plebs across all countries are able to use as both a store of value and method of payment.”
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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