๐ง What is Forex Protocol in Terra Classic โ and the role of USTC
Forex Protocol is a basket of stablecoins from different countries, operating within the blockchain.
๐ Euro, yen, yuan, pound, rupee, and other currencies
๐ each represented by its own Classic-stablecoin
๐ everything is exchanged directly, without banks and SWIFT
Essentially โ a digital currency market within Terra Classic.
๐ฑ And where does USTC fit in?
USTC is not just a former stablecoin.
In this system, it plays the role of the center of the basket:
โข through USTC, other currencies are balanced
โข through it, clearing and settlements occur
โข it connects the entire basket into one system
๐ฅ Why this gives value to USTC
If USTC is used:
โข not as a $1-stable
โข but as a unit of account for the entire basket of currencies
then its value:
โข no longer has to be $1
โข depends on the volume of settlements, not on the peg
๐ This is how reserve assets work, not regular stablecoins.
Not "if", but "when" everything works, it will be ๐ฅ for both the price of USTC and the market.
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