The digital currencies are supported by dollars, some of them by gold, but this cryptocurrency is buoyed by another digital rival.
The Facebook’s Libra, as a stablecoin, is the new one in the series of cryptocurrencies striving to escape the bitcoin high volatility, which makes it unfavorable for commerce. So, these base on more reliable assets, for example on diverse commodity types or traditional currencies.
However, unlike the other Dai is supported by another digital currency and namely, ethereum - to buoy a safe value.
Dai was launched in 2017 and it is effectively backed by the dollar, and supported by ethereum cryptocurrency, that is locked in publicly transparent contracts that are based on the blockchain.
The great part of the stablecoins is trusted because of their cost, that is derived by main bank currencies. Users believe in Dai because the ethereum, embedded in contracts usually surpasses the cost of Dai, that is in use.
When Dai’s price goes far away from the greenback, the balancing mechanisms are stimulated to guide it back.
So, the regulators' attitude towards Dai could help shape how a cryptocurrency may shift from a speculative one to actual digital money. It’s up to them now.
Meantime, one should mention the rates of the most well-known cryptocurrencies:
Bitcoin weakened by 1.09 percent, to $8,472;
Bitcoin Cash lost 2.05 percent, to $263,30
Ethereum eased by 1.21 percent, to $182,97
Litecoin lost 1.42 percent, to $58,80 at 8.47 GMT.