Shiba Inu (SHIB) Team is nearing the introduction of their stable coin.
Shiba Inu (SHIB) is enthusiastically working tirelessly to produce its first-ever stablecoin, SHI, as part of its attempts to demonstrate that it is not a memecoin.
Shiba Inu founder Ryoshi originally mentioned the stablecoin in a blog post in May 2021, and it will launch on both Shibarium layer 2 and the Ethereum blockchain.
SHI is a global stablecoin that will be utilized as a payment method and a store of value, as mentioned in the blog article.
Stablecoins are typically backed by a stable asset, such as a fiat money. A closer look at the top three stablecoins in the global cryptocurrency ranking reveals that the digital currencies are backed in a 1:1 ratio by the US dollar.
What’s New with SHI?
Surprisingly, the Shiba Inu team, which regards SHI as a stablecoin that retains value, stated that the cryptocurrency would be set at $0.01.
Based on this, stablecoin developers must store reserves or collateral that backs the payment method in a secure location to prevent its value from succumbing to the same volatility that plagues the cryptocurrency market.
It is unclear how the Shiba Inu team intends to sustain SHI’s stability. However, Gossip Shib, a fan of the dog-themed project, revealed today on Twitter that there are numerous approaches to consider when constructing the stablecoin.
There is no exact date set for the Shiba Inu team to officially launch the stablecoin at the time of writing, although the cryptocurrency project’s founder stated:
“Teams are working on several testing ahead to the official SHI launch.”
Meanwhile, despite widespread perception that LEASH will serve as the governance token for all Shiba Inu-related initiatives, it is still unclear whether SHI will be included among the SHIB projects regulated by LEASH.
“The final aim is that SHI (running on both ETH and the Shibarium) becomes a global stable currency that plebs in all countries may use as both a store of value and a form of payment,” Ryoshi explains.