Owing to the rising scams in the crypto-industry in the recent past, the concept of Stable-coin has emerged and trend of such coins has been eye-catchy for now. In just six months’ time or so, the concept of stable coins has evolved.

Of late, emerging nations and their central banks are testing their luck into the scope of blockchain and stablecoins.

China is sitting on frontrunner in the digital currency space and state-backed stablecoin, PBoC Deputy chief divulges the Outlines of ‘DCEP’ (their native cryptocurrency). While Russia is now in the news of testing ‘state-backed’ digital currency, with the sovereign state considering issuing a digital currency backed by gold.

The Bank of Russia (CBR), has reportedly revealed that they are testing stablecoins pegged to real assets in a regulatory sandbox. Elvira Nabiullina, Russia’s central bank chairperson, said to ‘Interfax’ the Russian news outlet, that with decisive approach the central bank tests stablecoins’ functionalities as a means of payment vehicle or how can it play a role of a substitute for fiat-money.

“We test stablecoins in our regulatory“ sandbox. ”Companies come that want to issue tokens secured by some real assets. We in the“ sandbox ”look at how they can work, but we do not assume that they will function as a means of payment and become money surrogate, " she clarified.

Furthermore, she also revealed that the possibility of the invent of native digital currency but emphasized the after-effects of the issuance of such a digital ruble amid the paradigm shift in the structure of the conventional financial market.

She came up with an instance to explain their meticulous approach in designing the digital currency contemplating its proc and cons, the individuals are allowed to keep money in accounts with the Central Bank, this could significantly change the passive base of commercial banks. In some not very calm times, the flight of deposits and overflow of funds may begin, said Nabiullina.

Stablecoins are usually designed to confront the various issues, predominantly to address the price turbulence observed in the cryptocurrency prices. Hence, such stable-coin mechanisms are generally collateralized, meaning that the quantum of stable-coins in circulation is backed by some assets held in reserve. In this case, they say the stable-coins that are going to be tested are pegged to real assets.