In a time when technological solutions have become mostly confusing, Stablecoins have been intro-duced as a solution to the problem of money transactions and currency volatility.
Let’s take a look at the functions of Stablecoins as well as at their multiple models such as fiat collateralized, crypto collateralized and non-collateralized Stablecoins.

HOW DO STABLECOINS WORK?

The first and foremost type of Stablecoins is that backed by paper money. Usually these kind of Stablecoins are backed 1:1 by fiat currencies and can be converted into fiat currency units.

A second type of Stablecoins are those backed by cryptocurrencies, and a third type of Stablecoins are the so-called algorithmic ones.

A fourth type of Stablecoins which is enjoying a lot of interest around the world are commodity-backed, e.g. gold-backed Stablecoins, like kinesis coins.

Gold-backed Stablecoins merge all benefits of the blockchain technology with the value stability of the world’s hardest currency, gold.

WHAT IS THE IMPORTANCE OF GOLD – COLLATERALIZED STABLECOINS FOR YOU?

Using the blockchain technology, Kinesis is developing a whole monetary system, so that their Stablecoins can replace the use of fiat money.

When you deposit money in a bank, you are taking on risk as you are exposed to the risk of a bank failure. There is no risk exposure with Kinesis Stablecoins as they represent title of ownership of gold and silver. With traditional bank deposits instead, should the bank fail, the risk is passed on to the paper depositor above the guarantee limit.

But Kinesis gold-backed Stablecoins are important for governments too. For example, most govern-ments don’t like cash as it limits their ability to fight crime like terrorism. Kinesis support the Know Your Customer (KYC) process, so that anyone who want to participate into the Kinesis Monetary System has to undergo it.

WHAT MAKES KINESIS UNIQUE :

Kinesis is a full monetary system with a primary (the Kinesis Blockchain Exchange) and secondary market structure (many other Exchanges spread around the world).

They have two exchanges, one being an exchange for creating (minting) new K-currencies and the other one being a full service exchange for digital asset transactions.

Kinesis will have a mobile banking integration, an app allowing to sell, send or spend Kinesis currencies with a smart phone.

There will be the Kinesis Commercial Center, where merchants will sell their goods and services, and there will be the Kinesis debit card that will allow users to spend their Kinesis coins anywhere where Visa is accepted. Therefore even if crypto merchant adoption is still slow, you can still spend your KAU and KAG coins anywhere in the world!

KINESIS YIELD SYSTEM :

Kinesis offer a full yield reward system that incentivizes the participation into their monetary system: When K-currencies are transferred (sent, sold or spent) the system collects a 0.45% fee. Fees are accumulated and then distributed monthly to the participants, according to their function within the Kinesis Monetary System (minters, holders, depositors, referrers or investors).

The yield will vary according to the market capitalization of the K-currencies (the total value of the K-currencies) and their velocity (the rate at which they will get exchanged).

In a nutshell, we have presented you some useful information which can be used when assessing your own financial situation. If you have any important notes to add regarding Kinesis coins as well as Stablecoins in general, let us know! Moreover, if you have suggestions to make, ask us and we will talk about it!

Author's Bio: 

This is Faraz Shamsi, I love to write all the time.
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