Understanding YEM - Part 1 - What is the difference between YEM and stablecoin?

 

Digital currencies are changing the way we pay and store value. While so-called stablecoins are tied to traditional currencies like the US dollar, YEM takes a completely different approach. YEM is not just a digital currency—it’s a system designed for long-term value preservation and steady growth. But what exactly sets it apart?

 

By: Safezone Expert

Reading time: ca. 2 Min.

 

 

The key difference between YEM and a stablecoin is in how their value is determined and maintained:

 

1. Nature of Value

 

• YEM (Your Everyday Money) → A digital currency whose value is not pegged to a fiat currency like USD or EUR. Its price is determined by its own internal value system and market factors within the YEM ecosystem.

• Stablecoin → A cryptocurrency pegged to a stable asset, usually 1:1 with a fiat currency (e.g., 1 USDT ≈ 1 USD) or sometimes gold.

 

 

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2. Price Stability

 

• YEM → Has a controlled growth model—its value is managed to increase steadily over time, not fluctuate wildly like many cryptocurrencies, but it’s also not fixed to a fiat value.

• Stablecoin → The goal is no growth and no drop—the price should always match the pegged asset exactly (unless there’s a failure in the peg).

 

 

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3. Purpose

 

• YEM → Designed for long-term purchasing power growth and global everyday use, plus protection against volatility.

• Stablecoin → Primarily a price-stable medium of exchange or a store of value to avoid crypto volatility.

 

 

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4. Backing

 

• YEM → Backed by its community, controlled supply, and ecosystem rules—not by a central bank or physical reserve.

• Stablecoin → Backed (in theory) by reserves of the pegged asset or equivalent (cash, treasury bonds, gold, etc.).

 

 

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