Ripple CTO Explains Challenges of Decentralizing Gold-Pegged Coins

IconCryptoNewsTerminal Staff09 Aug, 2024

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Ripple CTO Explains Challenges of Decentralizing Gold-Pegged Coins

Ripple's CTO, David Schwartz, recently shared his insights on the challenges of maintaining decentralization for gold-pegged coins. In a YouTube video, he explained that over-collateralization, a strategy used to preserve token value, would require storing physical gold. However, this approach introduces potential risks, such as seizure by authorities. Schwartz emphasized that achieving both decentralization and asset-backing is a complex task.