The PayAABB digital asset payment processing solution allows businesses to accept digital assets from all around the world.
Even though classic economic models categorically excluded it, stagflation appears to be a real possibility nowadays. The recent downtrend on Wall Street signals investors’ fear of an extended period of high inflation and low growth.
For the first time in history, the market will be able to test a new way to hedge stagflation risk. We are talking about gold-backed cryptocurrencies and Asia Broadband Inc (OTC: AABB) has recently joined this market.
The Success of Gold-Backed Tokens
To exchange fiat currencies for a token is often expensive. The popularity of dollar-backed coins is due to this reason. Even still, gold-backed cryptocurrencies are a novelty in today’s cryptocurrency market.
With gold-backed digital tokens, investors may have the best of both worlds. These coins are less susceptible to price fluctuations because of a mechanism that ties them to actual gold.
Users may invest in an asset that matches the price of gold without having to deal with a gold dealer. It’s hardly surprising that investors are flocking to gold as a hedge against global uncertainty and inflation.
On the other hand, gold-backed cryptocurrencies are still new, and investors are learning to use them.
The Relationship between Gold and Stagflation
Economic growth has slowed after a strong start, and inflation has skyrocketed in the second half of the year.
Stagflation fears have started to surface in the media. A recession and high inflation occur together during stagflation.
The combination is particularly lethal since central banks need to make a delicate choice. Central bankers cannot fight the two phenomena at the same time. Consequently, they’ll need to either reduce inflation and worsen economic growth or do the opposite.
Between 1974 and 1982, the United States experienced a prolonged period of stagflation. Investors used gold as a hedge in the past. Due to high risk, rising inflation, and declining real interest rates, gold performs exceptionally well in stagflationary conditions.
In modern history, gold and bonds have been the only investments that have provided positive returns in all economic cycles.
The AABB Gold Token
AABB Gold (AABBG) is a popular digital asset for Asia Broadband with its gold backing. The token uses the ERC-20 popular protocol and went live on March 2021.
AABBG is a hybrid cryptocurrency since it has a peg to physical gold. Due to its relationship to gold, AABBG’s price may rise in response to crypto and precious metals market changes.
Gold and cryptocurrency characteristics can benefit token holders, resulting in price increases. In the first two weeks of trading, the project raised over $1 million in token sales.
There are some qualities of stablecoins in it, but we shouldn’t claim that AABBG belongs to this crypto family. For a minimum spot price of 0.1 grams, the team decided to support AABBG pricing with $30 million in gold reserves.
For the project to flourish, the company’s mining output and acquisition plan will be crucial. This plan will mainly target various areas of Mexico. The AABB Gold token, AABB Wallet, AABB Exchange, and NFTs are critical to the project’s ecosystem’s success.
The Project’s Key Features
You may buy and sell AABBG tokens (AABBG) through the company’s wallet system. AABB hopes to achieve momentum in the industry by utilizing many features of its digital wallet.
At the beginning of 2021, Asia Broadband’s digital asset wallet, AABB Wallet, became operational.
Customers and transactions are entirely private in the AABB Wallet, so no one else can see what users are trading.
There are no fees or transaction charges associated with sending and receiving digital assets. Furthermore, it’s possible to transfer AABB Gold and other digital assets by email, social media, and SMS with the iTransfer feature.
An Eye to the Future
B2B and B2C transactions are possible using the wallet’s Merchant API. If you’re looking to promote customer loyalty and reward your users, this feature may interest you.
The PayAABB digital asset payment processing solution allows businesses to accept digital assets from all around the world.
In the current climate of economic stagflation, some investors will look at AABBG with interest. Gold-backed cryptocurrencies will soon have the chance to pass the test of high inflation.
AABB updates are easy to find online. Everyone interested in the project can refer to the company’s website and social media sites like Reddit, YouTube, and Twitter.
Devan is a crypto trader and Bitcoin enthusiast. He does his best to keep up to date with all the latest trends and innovations in the blockchain industry and likes sharing his expertise.
