Formerly, the U.S Dollar was backed by the gold standard, which officially ended in 1971. Thus after 1971, the currency was no longer backed by a commodity. Rather, the U.S dollar is now backed entirely by one’s faith and trust in the Federal Reserve and the U.S Government. Indeed, in the past year, the Federal Reserve has printed unprecedented amounts of the U.S Dollar as a response to the economy suffered by the global pandemic. What this means is that there is a growing demand and significance for asset-backed cryptocurrency due to fiat currencies being predominantly inflationary.
Whereas asset-backed cryptocurrencies are blockchain-based units of value that are tied to tangible real-world assets and commodities that can help to combat the rising costs of inflation.
With digital payment technologies forcing banks to evolve, many banks have started to support cryptocurrency. Notably, in March, U.S. bank giant Morgan Stanley was the first major U.S bank to announce its wealth management clients access to bitcoin funds.
James Gorman, Morgan Stanley CEO, stated, “[cryptocurrencies] aren’t going away and the blockchain technology supporting [them] is obviously very real and powerful.”
Major banks have even started to invest in cryptocurrency and blockchain companies, with the blockchain Ripple landing financial backing from London-based financial giant Standard Chartered.
Circularr is a blockchain ecosystem that focuses on the incubation and development of sustainable crypto assets. Launching the first sustainable crypto asset backed by sustainable commodities. The first asset ($CIRP) is backed by plastic recycling and the value of rPET plastic. This solution will power traceability and work to commoditise the value of recycled plastic and other sustainable assets.
What is particularly significant about the Circularr ecosystem is that our assets are designed around utility and use case, backed by real-world assets, that make a difference by encouraging plastic recycling.
Find out more about the Circularr ecosystem at https://circularr.com/