<p>I am new to Cardano and would like guidance on prototyping a fiat-based stablecoin on the platform. Could you please provide me with some guidance on where to begin?&quot;</p>

CC BY-SA 4.0
2023-09-18T07:54:43.397Z
There are two components to your question. Firstly how to design and implement a stable coin, which is a question that is completely independent of Cardano, and secondly how to create a token on Cardano which I am sure is documented somewhere.
Erik de Castro Lopo
CC BY-SA 4.0
2023-09-18T08:06:20.190Z
Once you have answers to these two components, combining them to produce the result you want should be relatively easy.
Erik de Castro Lopo
CC BY-SA 4.0
2023-09-18T09:13:42.013Z
Thanks a lot for your guidance.
salmas
CC BY-SA 4.0
2023-09-18T09:39:27.943Z
I have found some resources for creating tokens on Cardano. For the stable coin concept, most of the information on the internet seems to suggest using smart contracts for implementing stablecoins. However, it appears that using native tokens would be more suitable for Cardano. Unfortunately, I am unsure how to integrate these two components.
salmas
CC BY-SA 4.0
2023-09-18T10:25:49.490Z
The actually implementation of a stable coins is only a *TINY* part of the whole enterprise. Well over 95% of the task is figuring out  how to back the value of your stable coin and how to peg it to whatever your token is meant to be pegged to. Pretty sure you do not need a smart contract to implement a stablecoin on Cardano as long as you do the other bit first.
Erik de Castro Lopo
CC BY-SA 4.0
2023-09-18T12:29:37.087Z
Thank you very much. Let me think out loud. I plan to create a token on Cardano and connect it to a bank account. If users transfer money within the network, I will use a regular transaction without accessing the bank account. However, if users transfer money outside the network to a third party, I will burn tokens and transfer the money from the bank account to the third party.
salmas
CC BY-SA 4.0
2023-09-18T20:16:01.113Z
Yes, that sounds like a rudimentary stablecoin.
Erik de Castro Lopo
<development><stablecoins>
How to develop stablecoin on Cardano?
# How to develop stablecoin on Cardano?

(Asked by: username_0 on 2023-09-18)

I am new to Cardano and would like guidance on prototyping a fiat-based stablecoin on the platform. Could you please provide me with some guidance on where to begin?"

**Tags:** development, stablecoins
> **Comments:**
> **username_1**: There are two components to your question. Firstly how to design and implement a stable coin, which is a question that is completely independent of Cardano, and secondly how to create a token on Cardano which I am sure is documented somewhere.  
> **username_1**: Once you have answers to these two components, combining them to produce the result you want should be relatively easy.  
> **username_0**: Thanks a lot for your guidance.  
> **username_0**: I have found some resources for creating tokens on Cardano. For the stable coin concept, most of the information on the internet seems to suggest using smart contracts for implementing stablecoins. However, it appears that using native tokens would be more suitable for Cardano. Unfortunately, I am unsure how to integrate these two components.  
> **username_1**: The actually implementation of a stable coins is only a *TINY* part of the whole enterprise. Well over 95% of the task is figuring out  how to back the value of your stable coin and how to peg it to whatever your token is meant to be pegged to. Pretty sure you do not need a smart contract to implement a stablecoin on Cardano as long as you do the other bit first.  
> **username_0**: Thank you very much. Let me think out loud. I plan to create a token on Cardano and connect it to a bank account. If users transfer money within the network, I will use a regular transaction without accessing the bank account. However, if users transfer money outside the network to a third party, I will burn tokens and transfer the money from the bank account to the third party.  
> **username_1**: Yes, that sounds like a rudimentary stablecoin.  

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## 0 answers

