USDi: A New Stablecoin that Protects the Value of Money from Inflation
Jakarta, Pintu News – In the innovative world of finance, a new cryptocurrency has emerged that promises to protect against inflation.
The currency is USDi, a stablecoin designed to adjust its value based on Consumer Price Index (CPI) data and Government Inflation Protected Securities (TIPS) performance.
Created by Michael Ashton and two colleagues, USDi offers a solution for those who want to minimize the risk of losing money’s purchasing power.
What is USDi?
USDi, not directly tied to the US dollar, has a unique mechanism to adjust its value. This stablecoin is designed to orbit the dollar’s value, but its exchange rate will fluctuate with changes in US inflation.
According to Ashton, USDi will increase in value according to regularly released CPI reports, calculating total inflation since the start date set in December 2024. Currently, the value of USDi is $1.00863, showing that the stablecoin is still very close to the dollar’s value.
However, with each CPI report released, the value of USDi will be adjusted to reflect changes in the inflation rate, protecting its holders against declining purchasing power.
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The Beginning of USDi
USDi is inspired by TIPS, government bonds designed to provide protection against inflation. As CPI reports are only issued monthly, Ashton will adjust the price of USDi according to the data most frequently used by TIPS investors.
This allows USDi to provide a more accurate and responsive picture of inflation. To maintain this system, Ashton will manage a fund that acts as a reserve for the stablecoin.
USDi Partners LLC, the company behind USDi, mints and burns tokens according to the daily inflation rate plus a small transaction fee. This ensures that Usdi’s value always reflects current economic conditions.
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USDi Successes and Challenges
While USDi offers an innovative approach, the already crowded stablecoin market demands a robust strategy to gain initial traction. With only accredited investors able to participate in the initial launch, the challenge for USDi will be to attract investor interest and trust.
Early success will depend largely on the USDi’s ability to prove its reliability and effectiveness in protecting against inflation. If USDi can establish itself as an effective financial tool, it will add a new dimension to the practical applications of cryptocurrencies.
As such, USDi will not only assist individuals in protecting their assets from inflation but also demonstrate the vast potential of innovation in blockchain technology.
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*Disclaimer
This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.
Reference
- BeInCrypto. USDI Stablecoin to Protect Against Inflation. Accessed on April 17, 2025
- Featured Image: Generated by AI
