In our solution, fiat pegged cryptocurrencies are called “Moneta”. All Monetas will initially be issued on the blockchain so they exist as a cryptocurrency token. Each Moneta unit issued into circulation is backed in a one-to-one ratio (i.e. one Moneta USD is one US dollar, one Moneta UAH is one Ukrainian Hryvnia) by the corresponding fiat currency unit held in deposit by Moneta Holdings.
Monetas may be redeemable/exchangeable for the underlying fiat currency pursuant to Moneta Holdings terms of service or, if the holder prefers, the equivalent spot value in any other cryptocurrency. Once a Moneta has been issued, it can be transferred, stored, spent, etc. just like any other cryptocurrency.
The fiat currency on reserve has gained the properties of a cryptocurrency and its price is permanently monetized to the price of the fiat currency. Our implementation has the following advantages over other fiat pegged cryptocurrencies: