October 26, 2022
October 26, 2022

ZARC Stablecoin

ZARC NeoNomad’s 1:1 pegged South African Rand stablecoin.

NeoNomad has just announced the launch of their ZARC stablecoin for Q1 2023. This stablecoin is pegged to the South African ZAR. In a world where global wealth is controlled largely by institutions and government, NeoNomad aims to provide a more decentralized solution that gives power back to the people.

In this article, we will discuss the features of ZARC, and we will explore why this stablecoin would be a good investment option. Let’s begin!

How Do Stablecoins Work

One of the main advantages of stablecoins is that they are pegged to a certain asset, which in this case is the South African ZAR. At the moment, most stablecoins are backed by the US dollar, but there are a few that are backed by other assets such as gold. The advantage of having a stablecoin that is pegged to the ZAR is that it offers investors and traders an opportunity to hedge against the US dollar. That’s one of the reasons NeoNomad’s ZARC stablecoin could be a good investment option.

How Does a South African ZAR Pegged Stablecoin Work?

A stablecoin is a digital asset designed to minimize the volatility of its price. In other words, it is a cryptocurrency that is pegged to another stable asset, such as gold or the US Dollar. The South African Rand is a good choice for pegging because it is a currency that is not subject to large fluctuations.

You can exchange your South African Rands from your local bank or exchange them for ZARC at a one-to-one rate. The main advantage of using a stablecoin is that you can avoid the volatility of other cryptocurrencies, while still enjoying the benefits of blockchain technology. Once you make a transfer, the ZARC smart contract will lock in the value of your Rand and issue you the corresponding amount of ZARC. For example, if you exchange 100 Rands for ZARC, you will receive 100 ZARC. If you are holding a more volatile crypto asset like Bitcoin or Ethereum, you can use a stablecoin to mitigate losses during periods of market turbulence.

What is ZARC?

ZARC is a stablecoin fiat on/off-ramp used to exchange South African ZAR from a bank account for ZARC tokens. ZARC is an ERC20, BEP20, and SPL token, which means that it can be stored in any wallet that supports Ethereum, BNB, and Solana.

To use ZARC, you can swap your USDC or any other token for ZARC at a one-to-one rate. Once you have your ZARC, you can use it to buy other cryptocurrencies, or you can hold it as a long-term investment. As an asset-backed token, ZARC is a good way to hedge against the volatility of other cryptocurrencies.

Investors will also have reliable on-ramp and off-ramp solutions thanks to the partnership between ZARC smart contract and NomadyPay, which is NeoNomad’s integrated payments service.

What Makes ZARC So Special?

So far we have discussed the features of ZARC, and we have seen how it can revolutionize crypto. But what makes ZARC so special? Here are 7 things to note.

1. ZARC will be Widely Adopted

NeoNomad aims to make ZARC the go-to stablecoin for crypto investors. To achieve this, they are working on integrating ZARC with merchants, exchanges, and wallets. This will make it easy for people to use ZARC in their everyday lives. By making it easy to access and use, more people will be likely to adopt ZARC.

ZARC is the first centralized and decentralized exchange to allow users to gain access to Crypto DeFi in the quickest way. It eliminates the use of database-tracked FIAT reserves. Users can deposit funds and receive ZARC straight into their crypto wallet without having to trade other tokens and currencies. This is a MASSIVE step forward into growing adoption.

2. ZARC will Be Utilized Like Other Stablecoins

Stablecoins are currently the most popular type of cryptocurrency because they offer the stability that investors crave. ZARC will be no different. It can be used in the same way as other fiat-pegged stablecoins. This means that it can be used to store value, make payments, and even earn interest. The fact that ZARC will be available on multiple blockchains makes it even more versatile.

3. ZARC is Backed by the South African Rand

One thing to note is that ZARC is not pegged to the US Dollar like most other stablecoins. This could be seen as a disadvantage because the US Dollar is currently the world’s reserve currency. However, this also offers some advantages. For one, it makes ZARC less susceptible to US economic policy.

Since most stablecoins are pegged to the US dollar, there is a gap in the market for stablecoins that are pegged to other currencies like ZAR. Another advantage of using the South African Rand is that it is relatively easy to convert into other currencies. This means that if you want to cash out of your investment, you can do so without incurring high fees.

4. ZARC Will Have Transparent Proof of Reserve

For a stablecoin to be successful, it is essential that it has transparent proof of reserve. This means that investors should be able to see how much fiat currency is backing the coin.

The good news is that ZARC will have a transparent proof of reserve. At any given time, the balance of ZAR fiat currency held in reserves will be equal to (or greater than) the number of ZARC in circulation. This will instil confidence in investors and help to increase the adoption of ZARC.

5. ZARC Will be Less Prone to Market Risks

One of the benefits of having a stablecoin is that it is less prone to market risks. This is because the price of the coin is pegged to a fiat currency, and so it is not subject to the same volatility as other cryptocurrencies.

For example, if there is a black swan event or a liquidity crunch, ZARC will be less affected than other cryptocurrencies. This makes it a good choice for investors who want to protect their portfolios from market volatility.

6. ZARC Provides Better Investment Conditions

If you are looking for a stablecoin to invest in, then ZARC is a good choice. Another advantage of investing in ZARC is that it has low spreads. This means that you will not have to pay high fees when you buy or sell the coin. To put this in context, every single South African exchange has a 5–9% premium above the market value of any cryptocurrency. ZARC eliminates this cost.

7. ZARC Is Highly Liquid

Liquidity is important for any investment. It is a measure of how easily an asset can be bought or sold without affecting the price. ZARC is a highly liquid coin, which means that it can be easily traded on exchanges. This is because there is a high demand for the coin, and so there are always buyers and sellers willing to trade.

One of the benefits of having a liquid investment is that you can cash out quickly if you need to. For example, if you have an emergency expense, you can sell your ZARC and get access to cash immediately.

Why does ZARC on-ramp Solution Matter?

ZARC is an easy on-ramp/off-ramp solution for those who want to enter or exit the cryptocurrency market quickly and easily. This is because it is a highly liquid coin, and so it can be easily traded on exchanges. It gives traders and investors direct access to decentralized finance. According to NeoNomad, the ZARC liquidity pool will be the bridge between the Rand and the Dollar. This is important because NeoNomad is built on Solana and this allows users to swap their ZARC for any cryptocurrency since the NeoNomad exchange supports all tokens on the Solana Network. This is a major advantage over other fiat-pegged stablecoins, which can be difficult to trade.

Final Thoughts

ZARC is an on/off-ramp stablecoin solution that will be launched in Q1 2023, and it aims to revolutionize the way that people invest in cryptocurrency. It is highly liquid, so it can be easily traded on exchanges. If you are looking for a stablecoin to invest in, then ZARC could be an excellent choice!