Major crypto exchanges, Blockchain wallets, application developers, and economists have also come in to support our effort. We are proud to say that our backers now form an international network of supporters who have come together to help us make Basis the next great monetary system.
Given the nature of Basis’ business, it seems fitting that Warsh would be drawn to investing in it. It’s creating a crypto called stablecoin. Plans are for its supply to be controlled by an algorithm instead of a central bank.
Long-term, a stablecoin (a cryptocurrency that’s price-stable relative to fiat, or a basket of fiats) could bring unprecedented levels of accountability to the economies of developing nations. It could be used as a global store of value and mainstream medium of exchange, initially in developing countries with unreliable central banks, and eventually globally.
With the supply being controlled by an algorithm, observers point out how that’s different from Bitcoin and most major cryptocurrencies, which have fixed supplies. For these cryptos, demand changes often leads to volatility.
Interesting about the premise behind Basis is that when its supply needs to expand, newly-created Basis is distributed to people who participate in the system. In that way, the system decentralizes monetary expansion, Al-Naji explains in the blog.
He’s hopeful that Basis can help solve the problem of currency instability, especially for the people in the developing world. The thought is that by providing anyone with an internet connection access to a stable and secure medium of exchange, Basis can “significantly increase the efficiency of the economies of developing nations.”