The Argentinean project, Moneyonchain, is working with RSK (rootstock) to bring stability to Bitcoin. Spending bitcoin is not going to help crypto grow if no merchant is willing to accept it directly. They are scared!
Why? It’s because bitcoin is part of a very volatile asset class. No merchant wants to accept a bitcoin payment, then watch it drop 10-30 percent in value after a few minutes. Also, third party solutions aren’t going to help with crypto adoption if everything gets converted to US dollars.
About Moneyonchain...
Moneyonchain is now running on RSK, a sidechain to Bitcoin, to run stablecoins collateralized by BTC. These stablecoins are called DOC (Dollar On Chain).
“The system uses an algorithm to calculate a level of Bitcoin collateralization, so for every dollar issued, there are actually 3, 4 or 5 additional dollars deposited in the system. So, regardless of the volatility of the price of Bitcoin, there will always be a guarantee with enough cryptocurrencies to support the value of DOC tokens”, says Max Cajurzaa.
“The interesting thing about stablecoins with collateral in crypto is that they are free of counterparty risk, the whole solution is on the blockchain in a decentralized way and secured by the miners....”
Imagine the security and freedom from the use of the Bitcoin network mixed with a stablecoin that follows the price of the U.S. dollar.
The DOC stablecoin is available on the RSK testnet. Here are instructions to try it out for yourself.
Stablecoins on BTC… 🤭 How exciting is that??!!