A stable coin is a cryptocurrency that is collateralized to the value of an underlying asset, what that underlying asset may vary from coin to coin, which we’ll dive into later in this piece. Many stablecoins are pegged at a 1:1 ratio with certain fiat currencies, such as the US dollar or the Euro, which can be traded on exchanges. Stablecoins are much more fixed than standard cryptocurrencies. Stablecoins were built to be used the way cryptocurrencies were designed — as a simple, stabilized, scalable, and secure means for transactions. After all, most businesses, understandably, aren’t interested in accepting a currency like bitcoin that might tank in value the very next day. Anchor token is a stablecoin cryptocurrency pegged to an inflationary, algorithmic financial index that reflects the long-term growth of the global economy. Unlike fiat currencies that are inconsistent depreciation, data from the World Bank shows that since 1960,  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.