Coinbase's Next Big Bet: How Flatcoins Could Change the Crypto Game

15 Sept 2023

In a recent interview with Yahoo Finance, Coinbase CEO Brian Armstrong discussed a notable emerging concept in the cryptocurrency space — Flatcoins. Armstrong, in his characteristic composed manner, emphasized Coinbase’s interest in this new development, marking it as a significant trend to watch.

Flatcoins, described as stablecoins with an intriguing twist, are designed to be pegged to the cost of living, ensuring their purchasing power remains steadfast in the face of inflation fluctuations. They are being touted as a safeguard against rising costs and market volatility, adding a fascinating layer of innovation to the crypto landscape.

This article explores the concept of Flatcoins, delving into their potential to redefine the cryptocurrency landscape and their practical applications in the evolving financial ecosystem. If you’re curious about the world of Flatcoins and their potential impact, read the full article for an informative exploration.

In an interview with Yahoo Finance, Coinbase CEO Brian Armstrong discussed various topics ranging from their SEC lawsuit to cutting edge crypto projects.

When asked what can be expected from Coinbase, Armstrong claimed that Flatcoins are the “new thing on the horizon” and that Coinbase is “interested in it”.

One word stood out for many, and that was: Flatcoins.

It is the second time within 2 weeks that Brian Armstrong has specifically hailed Flatcoins and their potential.

The first time came in a Coinbase blog post that highlighted the top ideas in crypto startups and called out for new builders.

“Bitcoin is the gold standard of the internet, and that’s a great idea for a currency. But because it has so much upside, many are less willing to spend it as currency today. It still has some growing to do. Fiat-backed stablecoins are a great intermediary step, but they suffer from inflation and seizure — just like fiat money.
What would it look like to make a better form of money enabled by crypto? It would probably be totally decentralized and track consumer prices to preserve purchasing power, or something close to it. It may need to be backed by a basket of assets to track CPI, or use an algorithmic approach. Services like Truflation even offer a way to potentially track inflation onchain today, to further decentralize it. The company or protocol that helps build a better form of money in crypto would have a huge impact.”
- Brian Armstrong, CEO of Coinbase

What is a Flatcoin?

Simply put, a Flatcoin is a stablecoin that is pegged to the cost of living in order to keep up with the rate of inflation.

Flatcoins are described as an “inflation-proof” coin, and as a way for investors to protect their assets from rising costs and volatility.

The goal of Flatcoins is to keep the purchasing power of the coin the same, while the cost of living may fluctuate up or down depending on inflation.

This post, by ex-Coinbase CTO Balaji Srinivasan (@balajis), in 2021 is credited with being the first public mention of Flatcoins.

The cryptocurrency Nuon claims to be the first Flatcoin created back in 2022. Nuon is pegged to Truflation, an independent inflation index oracle, and is used as a hedge against inflation and to take advantage of arbitrage opportunities.

Some other examples of Flatcoins are:

  • Spot — is an Ampleforth Foundation project that is pegged to the cost of living in the USA
  • Collypto — a blockchain-tradable flatcoin collateralized using a tokenized index of real estate and commodities.
  • LendrUSD — is a specialized stablecoin with an inflation index pegged price target.
  • International Stable Currency — is a flatcoin pegged to the value of an underlying basket of real world assets, that does not include the US dollar.


Do you think Flatcoins will replace Stablecoins as the premier spending cryptocurrency?

Are they any other cryptocurrency ideas that have not been created yet?

What are your thoughts on this news?

Join the conversation and comment below!


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Gary Cartlidge
Sounds promising, but could influence bad characters to purposely inflate costs to wipe out competitors. Might take some time to make it good for everyone.
Nice article! Haven't heard them called flatcoins before but it does work
Flatcoins might just be a good idea
Very informative article, thank you!
Nice Blog
New day, you always learn new things, the new word today is flatcoins
good article, thank you
Coinbase's exploration into the world of flatcoins is undoubtedly an intriguing development in the cryptocurrency space. As the crypto industry continues to evolve, it's crucial for major players like Coinbase to adapt and innovate. Flatcoins, with their potential to bridge the gap between traditional finance and the crypto world, could indeed be the next big game-changer. By offering stablecoins pegged to real-world assets like the US dollar or commodities, Coinbase could bring a level of stability and predictability to the volatile crypto market. This move has the potential to attract a broader audience, including institutional investors, who have been hesitant to fully embrace cryptocurrencies due to their price volatility. Furthermore, the integration of flatcoins could open up exciting opportunities for decentralized finance (DeFi) applications, facilitating more efficient lending, borrowing, and trading.
Ok, if things get more expensive, who gives me the extra dollars if I sell my flatcoin? There is no other money in crypto than the money we pay in.
crypto game
Very interesting article, thanks
I am interested in seeing how these flatcoins work out. Definitely worth looking into.
It's fascinating to witness how blockchain technology continues to evolve and diversify, opening up new possibilities for both investors and the broader financial world.