MineCoin ‘Central Bank’ Claims to Solve Cryptocurrency Volatility
Minex, the team behind MineCoin, has announced a new “ecosystem.” Aimed at decreasing price volatility, the firm said the platform will make “MineCoin as [sic] a new payment unit based on blockchain technology.”
Referencing the growing interest in blockchain from major institutions like Banco Santander, Barclays and UBS, Minex argued that cryptocurrency’s volatility posed the main obstacle to mainstream adoption.
“The volatile nature of Bitcoin and other cryptocurrencies has prevented them from being widely adopted as a medium of value transfer,” the team told press.
“This has prevented many merchants from accepting cryptocurrency payments from their customers,” they continued.
The Central Bank of MineCoin.
In an attempt to solve the issue of volatility, the organization has begun work on the “Minex Bank.” Acting as a “central bank” using MineCoin as its “reserve currency,” the platform employs what developers call a “response algorithm” that regulates the MineCoin supply in response to demand.
Aiming for a balance that provides “the best of both worlds,” Minex claimed to be “working closely with reputed economists” to make sure the “Bank” combines aspects from both the legacy finance system and the rising cryptocurrency ecosystem.
Developers provided press with the following list of features provided by the Minex Bank:
- Increasing the supply of MineCoin (from reserves) during the period of high demand
- Buying excess MineCoin when the supply is far more than demand
- Allowing Minex Community to maintain their MineCoin deposits and getting POS
- Regulation of interest rates for POS based on market analysis
- Offering smart-MineCoin loans to community members by a computer algorithm based on an assessment of borrower’s financial activity in Minex Ecosystem.
The Minex Bank is the latest in a growing list of projects in development, with the team working on a “Minex Platform,” “Minex Exchange,” and “Minex Market.”
The company expressed confidence in its upcoming platform. “Experts from the banking sector and cryptocurrency community believe that upon realization of the current model,” they said, “Minex can become the market leader in blockchain technology platforms.”
Based in Kyiv, Ukraine, the Minex team is led by a team of three people: CEO Boris Shulyaev; CTO Ruslan Babych; and blockchain developer Vladyslav Zaichuck.
Related News
MinexSystems, the team behind MineCoin, is asking its users how the Minex Bank should operate. The company wants its community to vote on whether the MineCoin ecosystem’s central bank should be controlled algorithmically and beyond human control, or operated by a team of real people. MineCoin Central Bank: Should It Be Controlled by Math or Humans? Considering Minex Bank’s operation model an “important question,” the team says it wants to get the opinions from the people who use MineCoin and will be most affected by the bank. With two different models to choose from, users can vote on....
After raising an initial $150,000 USD, Minex continues its ICO until the end of December. Between now and the close of the crowdsale, the team has distributed a list of “4 reasons to join the MineCoin ICO this week.” ‘MineCoin Can Be Used to Buy Anything’. Bitcoinist previously reported on Minex’s vision of a complete financial system based on its MineCoin token. A fully-developed ecosystem would include an investment platform, an exchange, a “central bank,” and a marketplace for goods and services. The central bank is the most ambitious of these visions, regulating the MineCoin supply to....
On Thursday, the European Central Bank (ECB) announced the central bank’s third consecutive benchmark bank rate increase this year, raising the rate by 75 basis points (bps). In addition to the rate hike, the ECB changed the central bank’s targeted longer-term refinancing operations terms and conditions noting that they need to be “recalibrated.” ECB Hikes Rate in Attempt to Curb Red-Hot Inflation Eight days ago, the European Union’s statistics office Eurostat published the latest inflation report for September. Eurostat’s records indicated that Euro area annual inflation jumped to 9.9% in....
The CBN considered Bitt Inc’s experience in the development of the Eastern Caribbean Central Bank’s DCash, launched in April. Barbados-based fintech firm Bitt Inc will be working as the technical partner for the Central Bank of Nigeria for its proposed e-naira digital currency.In a Monday announcement, the Central Bank of Nigeria (CBN) said it had chosen Bitt Inc based on the company’s “technological competence, efficiency, platform security, interoperability and implementation experience.” It also considered the fintech firm’s experience in the development of the Eastern Caribbean Central....
A new report has claimed the Central African Republic, which became the first country in Africa to make bitcoin legal tender, recently requested the regional central bank’s assistance in developing a cryptocurrency regulatory framework. The report also said the CAR had expressed its “commitment to the single currency and respect for the statutes of the Bank of Central African States.”
Developing a Crypto Regulatory Framework
After initially clashing with the Central African Republic (CAR) over its decision to make bitcoin legal tender, the Bank of Central....