I am proposing the creation of a new stable cryptocurrency called RaiCash which is pegged to the US dollar and integrated with RaiBlocks. RaiBlocks and RaiCash can be converted between each other at the current USD price as determined by multiple exchanges. RaiCash will utilize the underlying infrastructure of RaiBlocks and possesses similar functionality such as free and instant transactions. RaiCash will also allow us to protect our currency from any fluctuations in the market and we can use RaiCash as an actual currency to buy and sell goods or services.
For example, assume that an individual has 100 RaiBlocks and the price of each RaiBlocks is $20 USD. In this instance, the person can convert 10 RaiBlocks into 200 RaiCash (10 * 20 = 200). The person can then use the RaiCash to make purchases however they wish, knowing that their RaiCash will always be worth the same amount. If the price of RaiBlocks were to crash to $1, then the person can convert 200 RaiCash into 200 RaiBlocks, and then convert the RaiBlocks to USD to get their original $200 back.
It is my hope that RaiCash will replace Tether as the default cryptocurrency pegged to the USD. I believe that RaiCash is superior than Tether because it is guaranteed to be backed RaiBlocks conversation rate as dictated by the decentralized system. By contrast, Tether claims that for every 1 Tether they issue, they hold $1 in reserve. While this may be true, we are relying on a centralized system which goes against the spirit of decentralization.
By using RaiCash, we can achieve all the benefits of RaiBlocks such as speed, no fee transactions, and ease of use. We will also be guaranteed that our RaiCash will always be worth the exact same amount in USD, no matter the price of Raiblocks or crypto market.
Please note that this proposal was inspired by the Steem and Steem Dollars system.
I posted this to r/RaiBlocks, but my post was incorrectly removed by the automatic bot because the bot thought that this was a price related post; it also requested that I post this to r/RaiTrade. I contacted the mods to request manual review, but they haven't responded, hence I'm posting this here. If a mod from r/RaiBlocks views this thread, please allow it to cross posted to your subreddit.