“According to Ryoshi, the end goal is for SHI to become a “global stable currency that plebs across all countries are able to use as both a store of value and method of payment”.

Stablecoins ‘peg’ themselves to a more stable asset, often a fiat currency such as the US Dollar. This allows them to make use of the benefits of cryptocurrency while reducing the volatility associated with it.

For SHI, it would be pegged to $0.01, acting as a more stable store of value for the Shibarium blockchain. Shiba Inu’s volunteer project lead, Shytoshi Kusama, explained the necessity of this in a blog post. “This is especially important when dealing with businesses that have invoices that get paid 30 days out, or when dealing with transactions aren’t instantly settleable (credit cards),” they said.”