Stablecoins may become a catalyst for widespread cryptocurrency adoption. Why? As their value does not fluctuate (for the most part, but we’ll get to that), they are better suited as a store of value and a unit of account. This means that they can enjoy all the traditional advantages of cryptocurrencies, mentioned earlier, as well as solve the volatility issue currently present in the crypto market. Furthermore, depending on who you ask, stablecoins include several other advantages. Currently, both crypto and fiat markets are missing a non-flationary baseline, a stable financial standard that is based on real value and maintains stability over time. In order to be stable, a currency must be pegged to a stable unit of value.

Anchor token is a stablecoin cryptocurrency pegged to a non-flationary, algorithmic financial index that reflects the long-term growth of the global economy. Unlike fiat currencies that are in consistent depreciation, data from the World Bank shows that since 1960, global GDP has expanded from $1.3trn to $80.7trn.

The Monetary Measurement Unit (MMU) is Anchor’s algorithmic financial index. The MMU is based on validated data from the International Monetary Fund (IMF), the World Bank, Bloomberg, and other official sources of more than 190 countries over the last 25 years. The MMU is further stabilized with FX indicators from a basket of 16 currencies, and premium sovereign bond yields from 20 of the world’s strongest economies.