Soft Stablecoin

BR2EX is not included in the utopic concept of a pure stablecoin, since the idea of a stablecoin is beyond the logic of the monetary economy’s history.

The coins value is in fact, indexed to its acceptance and its consequent goods and services power of acquisition, varying accordingly to the currency’s scarcity and abundance in the market or that of the other offered products, such being the market’s dynamic of supply and demand.

However, it is needed to elucidate that the oscillations in the coins value are not a negative factor. That is the essence of Friedrich August von Hayek’s theory, from the Austrian school of economical thinking, which appeals to the "consumer good" nature of money8. From that thought, the author positions himself against currency monopolization by the State, advocating for its free emission including its acquisition by the private initiative.

For such reasons it was decided to give BR2EX a slightly differentiated character – explained ahead – in relation to the classical concept of stable coins that has been utilized.

According to Sherman Lee, “a stablecoin is a cryptocurrency that is commonly linked to some stable asset, such as gold or the American Dollar. It is a global currency not bound to any central bank and with little volatility. These qualities allow the use of cryptocurrencies as a means of payment for day to day operations”9.

Thus, BR2EX is referred to in gold due to the reason that it possesses a greater value stability, as the great nations did until the end of the 20th century.

Nevertheless, aiming to further explore the idea and based on the search for stability and conservation of the reserve of currency’s value, even though recognizing that variations resulting from gold’s own nature must also be overcome, a new model of soft stablecoin is proposed.

Generally, “fiat-collateralized stablecoins” are bound to an active physical asset, gold for example, aiming to keep a perpetual parity.

The goal is to diminish the cryptocurrency’s value fluctuation, allowing its use as a day to day coin.

BR2EX aims to break the idea of parity without losing sight of the stablecoin stability. With the system of value increasing through usage, BR2EX will become, with time, distant from its joint system (1:1) and will gain value in detriment of its asset of reference.

It will not be gold dictating the currency value, it would be its reference point and the stabilizing element, BR2EX will not be enslaved by its parity to gold’s quotation, it will have its own value.

The ascendant curve of value in relation to the gram of gold will ensure that BR2EX becomes a more attractive coin when compared to its asset of reference and more stable than the rest of the cryptocurrencies in the market.

BR2EX embraces in this manner the best of the stablecoin theory alongside the independency of traditional cryptocurrencies, creating a new architecture of price entitled “soft stablecoin”.


9 LEE, Shermam. Explaining Stable Coins, The Holy Grail Of Cryptocurrency. Disponível em Acesso em janeiro de 2019.