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Stablecoins are cryptocurrencies with prices pegged to asset classes such as fiat currency, crypto, or such commodities as precious or industrial metals. The objective of creating crypto pegged to another asset is to minimize price volatility, a key obstacle to the mass adoption of cryptocurrencies.
As a result, creating crypto linked to a relatively stable asset could help increase user confidence. Stablecoins are meant to drive the growth and adoption of cryptocurrencies and their underlying blockchain technology.
This article introduces the GBPT, the first pound sterling–backed crypto. We'll look at how it works, its objectives and how it fares compared to other stablecoins.
GBPT is a regulated-stablecoin cryptocurrency backed 100 percent by the Great British Pound Sterling (GBP) held in bank accounts. This means that GBPT, also known as “poundtoken,” can be redeemed one-for-one with the pound sterling.