Pegging Cryptocurrency to the Global Economy Growth? (ft. Daniel Popa, Anchor AG)
A month ahead of the launch of Anchor’s stablecoin, its founder and CEO Daniel Popa sits down with our Editor-in-Chief Angie Lau to discuss why the world needs a two-token stablecoin pegged to the global economy — not the traditional US dollar peg — especially at a time where recession looms over investors’ heads. Since 18 months ago, Popa’s team of economists and blockchain developers sought out to create an index named the monetary measurement unit (MMU) to peg the Anchor currency to. The index itself, according to Popa, is a culmination of 190+ countries’ average GDP over the last 25 years, FX indicators, and other factors. As stablecoins are designed to minimize the volatility of a cryptocurrency price, Popa argues that pegging his cryptocurrency to the global economy growth would not only bypass inflation, but also bypass the upcoming recession by preserving the currency’s value or purchasing power over the volatile period. At the end of the day, Popa believes that all investors are seeking a safe harbor, whether it is to hedge their current assets or to invest in an unexplored asset class. As governments and crypto-enthusiasts alike are becoming more aware of this class of cryptocurrency, and that this can potentially bring short-term viability to fiat currencies, Popa is hopeful that this is the year of stablecoins.