Coinbase, a well-known cryptocurrency exchange, is exploring the possibility of launching “flatcoins” on its Base network. The exchange revealed that “flatcoins” are essential and are among three other “critical innovations” that are expected to be built on its layer-2 network. The exchange’s latest interest is to create an inflation-pegged stablecoin, backed by the “price of living,” by tracking the consumer price index and inflation data. The company stated that creating an inflation-tracking stablecoin is now “more important than ever” due to the current financial crisis, which contradicts central banks’ flawed monetary policy decisions.
Flatcoins: A Unique Stablecoin Offering
Stablecoins are usually pegged to the U.S. dollar or fiat currency; however, Coinbase’s flatcoins will track the rate of inflation, which would enable users to have stability in purchasing power while having resiliency from economic uncertainty caused by the legacy financial system. Moreover, flatcoins tied to inflation rates are expected to retain their value over time, making them a valuable option in nations or states with high inflation rates.
Also Read: Coinbase Launches Base, an Ethereum Layer-2 Network
Coinbase’s Request for Developers
Apart from flatcoins, Coinbase is encouraging developers to build an on-chain reputation system and an on-chain limit order book exchange. Additionally, the exchange is requesting tools to make the DeFi ecosystem more secure. The Base network is a secure, low-cost, developer-friendly Ethereum L2 that aims to bring the next billion users on-chain. The network’s vision is to create a space where everyone can participate in building the next-generation financial infrastructure.
Despite regulatory scrutiny, Coinbase continues to prioritize innovation by exploring unique offerings such as flatcoins. The launch of the Base network has garnered interest, and the first step for the layer-2 network is to create an inflation-pegged flatcoin. This move is significant because the current financial crisis has highlighted the flaws in central banks’ monetary policy decisions, making it essential to create an inflation-tracking stablecoin. Additionally, Coinbase is encouraging developers to create tools to make the DeFi ecosystem more secure and build an on-chain reputation system and limit order book exchange.
