BitShares: bitXCD can be shorted now

ash (73)in #bitshares • 8 years ago

The Eastern Caribbean Dollar - bitXCD - can now be shorted into existence.

This is a unique SmartCoin, because it is not backed by BTS but by bitUSD, as a 2nd level SmartCoin.

bitXCD does not bear the same risks as other SmartAssets, it's Feed Price is fixed to $0.3704 per 365 days Why? No idea, ask the Caribbeans

As consequence the minimum collateral is 1.001, and the fixed feed protects shorters from being margin called on bitXCD.

How-to buy BitShares for FIAT or BTC/ETH

#bitxcd #smartasset #smartcoin #bts

8 years ago in #bitshares by ash (73)

$161.87

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tonypeacock (57) 8 years ago

Good to know :)

$1.05

4 votes

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ash (73) 8 years ago

Now they need to adopt the smartcoin locally and we're set :)

$0.15

1 vote

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eric-boucher (68) 8 years ago

This is super cool to come across this new rise of 2nd generation smartCoin! I love it, especially when they are backed in such a healthy manner. thanks a lot for sharing this news with us all on Steemit.com

Namaste :)

$0.67

4 votes

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cm-steem (67) 8 years ago (edited)

The EC Dollar has been pegged at a fixed exchange rate to the US dollar (EC$2.70 to US$1.00) since 1976. This arrangement has protected the ECCU economy from large currency fluctuations. In order to maintain the EC Dollar, the Bank ensures that a sufficient level of foreign reserves is held to offset any external pressures on the currency.

Operational guidelines determine that this is
accomplished when the EC Dollar is backed
adequately by foreign reserves at a minimum of
80.0 per cent notwithstanding that by statute the
ECCB must maintain foreign reserves of not less
than 60.0 per cent of the Bank's demand liabilities.
To maintain monetary stability, it is important that
adequate reserves be maintained by generating
foreign exchange, establishing fiscal buffers and
maintaining a resilient financial sector.

https://www.eccb-centralbank.org/files/documents/Stategic_Plan/ECCB_Stategic_Plan_2017P2.compressed.pdf

Page 19: Regarding stable ECD
Also see: Appendix 3

Currently, the 'eccb-centralbank' only has to hold/guarantee 60-80% of EC$ collateral, but as a holder of EC$ you cannot prove this (only govt auditors perhaps).

The XCD:USD Bitshares market already has 101% proven backing collateral, far outperforming the central bank's minimum requirements/guarantees.

$0.09

2 votes

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zinonweke (55) 8 years ago

Nice info... I'm thinking, since the prices are fixed, does it mean that the prices are not likely to rise? If yes, how could one profit from buying the coin then?

$0.00

1 vote

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ravid (51) 8 years ago

Dude the whole idea is the price stability. Stop thinking about profits and start looking at usability. This asset was created for the people in the carribean free trade zone so that they can do their business without relying on banks too much. They need stable currency for that

$0.31

4 votes

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zinonweke (55) 8 years ago

Oh. Now I understand the whole idea of the asset.

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blueorgy79 (48) 8 years ago

nice information.thanks for your information.hope you will be know that very soon.
resteemed.

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