2 karmaJoined


CEO of Global Income Coin


Oh don't get me wrong. We're not a stablecoin, don't maintain a peg, and won't make a promise of value or stability. GLO is a floating currency; its value will need to be based on usage and not on any backing. This is deliberate: in the long term we believe a floating currency is more feasible than keeping a peg to an existing currency. This means there will indeed be volatility and this is a risk for anyone adopting GLO.

I realize the forum post may make it sound like we're suggesting a peg/stablecoin. That's not our intention. We didn't go into detail because we didn't want to make the post too technical, but on our homepage and whitepaper we're very explicit about this.

We do operate a reserve, and have a trading strategy that should, over time, grow the reserves as demand for GLO rises. But the goal of the reserves is merely to dampen volatility. In these interventions, we use $1 as a loose target, not as a peg. (Feedback on this trading strategy is very welcome.)