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What Is e-Money (NGM) And How Does It Work?

What Is e-Money (NGM) And How Does It Work?
E-Money (NGM)

What Is e-Money (NGM) And How Does It Work? – KuCoin Crypto Gem Observer

These days, many people see blockchain technology as the answer to serving populations with low banking resources. Without access to traditional banking systems, the world oFf cryptocurrencies is an ideal alternative, as it is cheaper and generally more democratic.

For e-Money, stablecoins seemed to be the ideal springboard for these communities in the world of digital assets. That is why you have created an ecosystem around these coin-backed stablecoins.

Also Read – Key Differences Between Token Staking and Token Farming

What is e-Money?
Who created e-Money?
How does E-Money work?
What is the NGM token and what is it used for?

What is e-Money?

Built on Cosmos, e-Money is a blockchain-based payment platform that is committed to achieving financial inclusion and helping people around the world have easy access to digital currencies.

Its vision is to provide a level playing field that allows equitable access to transparent financial services. It is looking to achieve this on a global scale, cutting costs along the way. e-Money is doing this by creating cross-blockchain-compatible next-generation stablecoins for the Internet of Money.

Who created e-Money?

e-Money was founded by a Danish duo: Martin Dyring-Andersen and Henrik Aasted Sørensen.

Martin Dyring-Andersen brought his entrepreneurial spirit to help create the project, with a particular interest in new technologies and their application to infrastructure. He is backed by more than 20 years of experience in startups, algorithmic trading, and forex markets.

Henrik Aasted Sørensen brings technical expertise to the project, helping to shape the software that powers electronic money. He has over 15 years of experience in software engineering, with roles within financial infrastructure, security, and consulting.

How does E-Money work?

E-Money’s range of currency-backed stablecoins was created to be a store of value, although it is thought to be the layer two solution for traditional finance, rather than a replacement.

E-money stablecoins are fully collateralized, backed by collateral in the form of commercial bank deposits. They currently support various European stablecoins such as eEUR, eCHF, eSEK, eNOK, and eDKK.

What makes these stablecoins stand out is the fact that they earn interest. Each stablecoin uses a dynamic parity that tracks the underlying interest rate, acting more like a bank deposit than cash on hand.

Tendermint, on which Cosmos is based, is ideal for the E-Money payment system as it is scalable, provides immediate finality, and can be configured for immediate block creation. The Sovereign E-Money Zone at Cosmos is designed to be easy to use, fast, and with incredibly low and negligible fees.

What is the NGM token and what is it used for?

NGM, known as Next Generation of Money, is the so-called staking token of the e-Money project.

There are a few different uses for the NGM token. First of all, it is used for staking. The purpose of this is to secure the e-Money network by linking it with one or more validators.

The second purpose of NGM is rewards. Every year, NGM’s supply is inflated by 10%. This is then distributed as gambling rewards to users who linked tokens, with those who bet more get a larger share of the rewards.

Transaction fees can be paid with NGM, which is also distributed as a reward. Essentially, all of the company’s stakeholders trust NGM, so their interests are aligned.

Final Thoughts

The cryptocurrency market will always need stablecoins. In his whitepaper, Closing Thoughts

The crypto market will always be in need of stablecoins. In its whitepaper, it outlines a range of use cases that all stem from its main vision to promote financial inclusion. The project is making strides in developing something not just global, but relevant for the target market. This is key for driving mass adoption.

Behind the scenes, the intuitive staking model ensures that all parties are on the same track and incentivizes people to get involved. All in all, e-Money looks to have a unique perspective in how stablecoins can be used, offering much needed remittance services, amongst other things, that are made ‘fast and frictionless’ using blockchain.

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