ChainEx, a South African crypto exchange platform has released its own stablecoin named CZAR. CZAR is “pegged” on the SA Rand —meaning its value is tied to the Rand— and built on a binance-powered blockchain.
Stablecoins provide more stability to customers than regular crypto coins due to the fact that they are attached to a traditional currency; thereby volatility in trade is reduced. Cryptocurrencies such as Bitcoin and Ethereum are not stablecoins and so their prices are highly unpredictable.
CZAR enables users to make transactions with regular currency on the blockchain. The tokens will promote the utilization of SA Rand digitally.
Making a statement on this, Michael Bernardt, Head of Community ChainEx, said CZAR is a “stablecoin similar to USDT and pegged on the South African Rand rather than the US dollar. Stablecoins help to avoid crypto volatility and as a bridge to enter the DeFi space.”
CZAR tokens can be used for the following, according to ChainEx: make payments to people in the same region as well as beyond the region; store assets to avoid price fluctuations; trade in DeFi markets and also make money during liquidity pools on DeFi.
In 2020, ChainEx launched a deposit feature that allowed users to perform instant trade and further opened up access to South African exchange markets to traders from other countries, on the platform.
ChainEx was founded in 2018 to provide South Africans with the accessibility to trade cryptocurrencies in return for SA Rands. ChainEx can be regarded as a South African “centralized cryptocurrency exchange.”