Coinbase CEO Brian Armstrong in a recent interview unveiled his interest in a novel concept within the cryptocurrency sphere, known as “flatcoins.” According to Armstrong, flatcoins represent the next evolution of stablecoins, offering a unique approach to maintaining value stability in the volatile world of cryptocurrencies.
Flatcoins, as Armstrong explained, are stablecoins that derive their value from a different source compared to traditional stablecoins. Rather than being backed by fiat currency or a basket of assets, flatcoins are pegged to purchasing power or the Consumer Price Index (CPI).
This means that the value of a flatcoin would fluctuate to reflect changes in the cost of goods and services, making it potentially more resilient to inflation and economic fluctuations.
Although Coinbase is not currently working on developing its own flatcoin, Armstrong expressed a keen interest in exploring this innovative concept. He noted that the cryptocurrency community, including influential figures such as former Coinbase CTO Balaji Srinivasan and Ethereum creator Vitalik Buterin, has engaged in discussions surrounding flatcoins.
The core idea behind flatcoins is to offer a cryptocurrency that can preserve its purchasing power over an extended period, providing a more stable form of digital money.
Flatcoins: A ‘Better’ Form Of Money?
In Armstrong’s view, flatcoins have the potential to be a “better form of money” within the cryptocurrency space when compared to existing cryptocurrencies and stablecoins. This statement underscores the belief that flatcoins could address some of the inherent volatility and value fluctuation issues that have plagued the crypto market for years.
During the interview, Armstrong also highlighted Coinbase’s recent accomplishments, including the successful launch of Base and its Coinbase Derivatives exchange. Base, a project initiated under Coinbase’s Onchain Summer initiative, has gained significant traction in the crypto space and is now ranked as the third-largest Layer 2 chain on Ethereum by Total Value Locked, according to data from The Block.
As of today, the market cap of cryptocurrencies stood at $1.01 trillion on the daily chart: TradingView.com
Venture Investments In Innovative Concepts
Armstrong’s enthusiasm for flatcoins isn’t limited to casual conversation. In a previous post on X, he had outlined the 10 crypto ideas that excited him the most, with flatcoins prominently featured. In the interview, Armstrong hinted at the possibility of Coinbase channeling some of its venture investments into these promising crypto ideas, including flatcoins.
This suggests that Coinbase is actively exploring avenues to contribute to the development and adoption of innovative cryptocurrency concepts.
Armstrong’s interest in flatcoins underscores the ongoing evolution of the cryptocurrency space. While flatcoins are still largely untested, they represent a compelling approach to creating a more stable and resilient digital currency. Coinbase’s potential involvement in this exciting development hints at the company’s commitment to pioneering new financial technologies and reshaping the future of digital money.
Featured image from iStock
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Author: Christian Encila
