{"id":84412,"date":"2023-09-13T11:27:59","date_gmt":"2023-09-13T08:27:59","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=84412"},"modified":"2025-09-12T17:11:03","modified_gmt":"2025-09-12T14:11:03","slug":"coinbase-ceo-outlines-concept-of-flatcoins","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/coinbase-ceo-outlines-concept-of-flatcoins\/","title":{"rendered":"Coinbase CEO outlines concept of &#8216;flatcoins&#8217;"},"content":{"rendered":"<p>Flatcoins are a type of <a href=\"https:\/\/u1f987.com\/en\/news\/what-are-stablecoins\">stablecoins<\/a> that are not tied to a specific asset or fiat currency, but move in line with inflation dynamics. <a href=\"https:\/\/finance.yahoo.com\/video\/coinbase-ceo-companys-next-steps-172157616.html?_guc_consent_skip=1694423933\">told<\/a> Coinbase CEO Brian Armstrong.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abThis is something new on the horizon. Two teams are working on &#8216;flatcoins&#8217;. We are not building anything in this space yet, but we are interested\u00bb, \u2014 said the CEO of the trading platform.<\/p>\n<\/blockquote>\n<p>Armstrong argues that flatcoins offer a better store of value, delivering higher returns on investment. A flatcoin could be backed by a basket of assets or use an algorithmic approach.<\/p>\n<p>The concept of this new type of stablecoins was first mentioned by Coinbase&#8217;s Chief Technology Officer Balaji Srinivasan in 2021.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Two kinds of stablecoins.<\/p>\n<p>Fiatcoins are pegged to an external fiat currency like USD, directly or indirectly.<\/p>\n<p>Flatcoins are newer. If fiat itself starts to inflate, it isn\u2019t really &#8220;stable&#8221;. So a flatcoin optimizes instead for price flatness vs an on-chain basket of goods.<\/p>\n<p>\u2014 Balaji (@balajis) <a href=\"https:\/\/twitter.com\/balajis\/status\/1402030233319088139?ref_src=twsrc%5Etfw\">June 7, 2021<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abIf fiat itself begins to inflate, it isn\u2019t really \u201cstable\u201d. Instead, a flatcoin is optimised to ensure price flatness relative to a basket of goods in the network\u00bb, \u2014 explained him.<\/p>\n<\/blockquote>\n<p>Armstrong himself included the concept of <a href=\"https:\/\/u1f987.com\/en\/news\/coinbase-ceo-unveils-top-10-ideas-to-watch-in-the-industry\">list of 10 noteworthy ideas<\/a> in the crypto industry.<\/p>\n<p>According to him, something like this is needed because people are reluctant to spend bitcoins, and fiat-backed stablecoins \u201csuffer from inflation and confiscation \u2014 just like national currencies\u201d.<\/p>\n<p>According to the World Bank, between 2021 and 2022 global inflation rose by 4.8%. This means the purchasing power of currencies declined.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/Snimok-ekrana-2023-09-13-v-10.54.10.webp\" alt=\"Snimok-ekrana-2023-09-13-v-10.54.10\" class=\"wp-image-215690\"\/><figcaption class=\"wp-element-caption\">Global inflation. Data: World Bank.<\/figcaption><\/figure>\n<p>There are currently a number of projects developing &#8220;flatcoins&#8221;. <a href=\"https:\/\/whitepaper.nuon.fi\/\">Nuon<\/a> aspires to be the first true flatcoin; it is an inflation-resistant token built on Ethereum.<\/p>\n<p>Additionally, there is <a href=\"https:\/\/www.isc.money\/\">International Stable Currency<\/a> (ISC) built on Solana. The coin is pegged to a diversified basket of assets, including Treasuries and gold. The project <a href=\"https:\/\/collypto.com\/\">Collypto<\/a> tracks indices for real estate and commodities.<\/p>\n<p>In March, Coinbase <a href=\"https:\/\/u1f987.com\/en\/news\/coinbase-flags-priority-areas-for-base-ecosystem-development\">named<\/a> priority directions for improving the Base ecosystem, among which flatcoins were mentioned.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Flatcoins are a type of stablecoins not pegged to a specific asset or fiat currency, but move in line with inflation, according to Coinbase CEO Brian Armstrong.<\/p>\n","protected":false},"author":1,"featured_media":84413,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[757,807],"class_list":["post-84412","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-brian-armstrong","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"18","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/84412","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=84412"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/84412\/revisions"}],"predecessor-version":[{"id":84414,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/84412\/revisions\/84414"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/84413"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=84412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=84412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=84412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}