Maker DAO founder: Stablecoin DAI will not be Backed to USD alone

Harsha Puvvala
Harsha puvvala is a writer for Thecoinrepublic. He is a bachelor of technology student at Jawaharlal Technological University Vizianagaram. He is interested in digital currencies especially blockchain, ethereum. He hopes to conduct research on these digital currencies for financial asset development.
Maker DAO founder: Stablecoin DAI will not be Backed to USD alone

  • Maker DAO rolled its MCD, which is supported by both Ethereum and Brave’s Basic Attention Token.
  • As DAI circulation crossed 50 million, the possibility of backing DAI to other currencies than just the dollar comes into light.
  • DAO founder predicts that DAI stablecoin might pegged with other currencies in future.

As of last month, maker DAO rolled its MCD, which is supported by both Ethereum and Brave’s Basic Attention Token, was opposed to SAI, which has restricted its support to Ethereum alone. While this conversion seems to be successful as the total DAI circulation crossed 50 million, the possibility of backing DAI to other currencies than just the dollar comes into light.

Christensen also agreed that considering what is best for the broader ecosystem and the stability was not just pegged with USD, he also said that

“Maybe the US dollar stops so dominant on a global scale that may cause even US dollar hyperinflation, so there is no reason. Why that should constrain the governance of system”. 

Christensen revealed the idea that one-day DAI could transition away from being fixed to a single currency and would target a CPI basket and so on, further aiming to become a global currency.

He pointed out that why popular currencies should be fixed to DAI as many people would like to deal with something familiar while exploring the aspects of blockchain and others.

DAI is pegged to USD for the same reason. However, Christensen stated that it isn’t enough and it must be way beyond as USD is a foreign currency for Japanese and European countries as well as for other countries.

Predicting the future possibilities Christensen said that

“today we only have DAI, which is pegged to USD but in the coming future we could have Euro DAI, which we would be fixed to Euro and Yen DAI fixed to Yen and maybe we would have US dollar DAI, that would be fixed to US dollar and then DAI itself would be then picked a global basket.”

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