// Currency Peg
The INC protocol is committed to meeting the needs of consumers for stable digital
currency by enabling INC to be used for electronic payments. To achieve this, the
INC protocol will be pegged to the INR – the fiat currency of India – to establish
a stable, decentralized, and tamper-proof INC-INR system. The protocol will
uncover the nature of currencies and bridge the gap between digital assets and
their practical applications.
Multi-fiat peg monetary policy
A stable-coin mechanism must answer three key questions:
How is price-stability defined?
Stability is a relative concept; which asset should a stable coin be pegged to in
order to appeal to the broadest possible audience?
How is price-stability measured?
-Coin price is exogenous to the blockchain, and an efficient, corruption-resistant price feed is necessary for the system to function properly.
How is price-stability achieved?
When coin price has deviated from the target, the system needs a way to apply pressures to the market to bring price back to the target
Ongoing Stable coins Designed to Achieve the Stable Price
As mentioned above, in order to introduce the payment method with blockchain for
the purpose of the smooth payment, it’s difficult to use the unstable cryptocurrency
such as Bitcoin for the general use. In light of that,we invented and issued a
INR-pegged stablecoin as a Prepaid Payment Instrument. On the blockchain platform,
there are three kinds of stablecoins
- stablecoins collateralized by fiat money,
- stablecoins collateralized bycryptocurrency, and
- stablecoins with no collateral.
Proof-of-Solvency
One desirable outcome of a stablecoin is convergence between the tokens issued
and the INR exchanged for their creation. The amount of tokens issued and
in circulation can be observed on the blockchain, however, verifying the underlying
INR balance to demonstrate proof-of-solvency requires examination by a
trusted party. For assurance, we propose that the audit committee or an independent
registered public accounting firm to regularly examine and attest to the underlying
INR balance in accordance with the attestation standards.
