Saver Token Vs Stablecoins
Saver Token can be used as a stablecoin by crypto-traders. It has some distinct advantages over most current stablecoins:
- Stable money. Because of their link to fiat currencies most stablecoins are in fact depreciating assets. For example the stablecoins linked to the US dollar loose on average 33% of their value every ten years. In contrast the Target Price of Saver Tokens is linked to the US Consumer Price Index (CPI-U), widely considered a measure of inflation.
- De-risk. Because Saver Token is structured like Bitcoin and other crypto-currencies with no underlying assets it avoids many of the risks inherent in most stablecoins. These include:
counterparty risk – the risk of the stablecoin’s bank or trust or other intermediary defaults
systemic risk – the risk the fiat financial system has a meltdown similar to the 2008 Financial Crisis
operational risk – various risks created by having a centralised issuer/redemption organisation including fraud, theft and operational failure.
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