The Next Iteration of Stablecoins: Flatcoins, according to Coinbase CEO
Brian Armstrong, the CEO of Coinbase, believes that flatcoins could be the future of stablecoins. In an interview with Yahoo Finance, Armstrong expressed his interest in this concept, stating that flatcoins are “the next iteration of stablecoins.” Although Coinbase hasn’t started developing flatcoins, Armstrong mentioned that there are already teams working on it.
“[The Flatcoin concept is] a new thing on the horizon. There’s a couple teams working on it.”
Brian Armstrong, Coinbase CEO
Armstrong considers flatcoins to be the most promising form of money in the crypto space, surpassing current cryptocurrencies and stablecoins. He discussed this idea in a blog post, suggesting that flatcoins could be linked to the Consumer Price Index (CPI) or purchasing power.
“I also put out a blog post talking about some of the future ideas on the horizon. And a number of our venture investments might go into things like that. But I talked about flat coins, which is kind of the next iteration of stablecoins that’s more maybe linked to CPI or purchasing power.”
Brian Armstrong, Coinbase CEO
What are Flatcoins?
Flatcoins are decentralized stablecoins designed to address inflation and uncertainty in the financial market during crises. According to Armstrong, flatcoins can serve as a response to the challenges faced by investors in the 2022-2023 crisis. The term “flatcoin” was likely coined by former Coinbase CTO Balaji Srinivasan, who proposed pegging the price of a flatcoin to “an on-chain basket of goods” to address inflationary fiat currencies.
Ten Uses of Blockchain
Armstrong has previously discussed the importance of flatcoins. He believes that they are necessary because people are hesitant to spend Bitcoins (BTC), and stablecoins can be affected by inflation and confiscation. The announcement of flatcoins was accompanied by other ideas for blockchain utilization, including on-chain reputation, on-chain ads, on-chain capital creation, crypto job marketplaces, and privacy solutions for second-layer blockchains.
Hot Take: The Potential of Flatcoins as the Next Generation Stablecoins
As the CEO of Coinbase, Brian Armstrong’s interest in flatcoins indicates the potential these decentralized stablecoins hold in the crypto space. By addressing inflation and uncertainties associated with traditional fiat currencies, flatcoins could become a more reliable form of digital money. With teams already working on flatcoin development, it is clear that the industry sees value in this concept. Additionally, Armstrong’s focus on blockchain’s effective use suggests that the future of cryptocurrencies extends beyond flatcoins, with various other applications and solutions in the pipeline.
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