Which country issued WAXP? Is WAXP worth hoarding for a long time?

The Central Bank of Tonga's WAXP cryptocurrency offers price stability as it's pegged to the US dollar, making it a reliable store of value for everyday transactions in Tonga.

Nov 03, 2024 at 08:35 pm

WAXP: Cryptocurrency Issued by the Kingdom of Tonga

Introduction

WAXP is a cryptocurrency issued by the Central Bank of Tonga, a sovereign state located in the South Pacific. It is a stablecoin, meaning that its value is pegged to a specific fiat currency, in this case, the US dollar.

1. Issuance

WAXP was first issued in January 2020 as part of a pilot project by the Central Bank of Tonga. The project aimed to introduce a digital currency backed by the stability of the US dollar and accessible to Tonga's residents.

2. Stability

WAXP is pegged to the US dollar at a ratio of 1:1. This means that 1 WAXP is always worth $1.00. This stability makes WAXP a safe and reliable store of value compared to other cryptocurrencies that experience significant price fluctuations.

3. Utility

WAXP is intended to be used for everyday transactions within Tonga. It can be used to purchase goods and services, pay bills, and receive salaries. Currently, its adoption is still limited, but it has the potential to become a widely accepted digital currency in the future.

4. Long-Term Investment

WAXP may not be a suitable long-term investment due to its stable nature. Its value is unlikely to appreciate significantly, as it is pegged to the US dollar. However, as a stablecoin, it can provide protection against the volatility of other cryptocurrencies and fiat currencies.

5. Availability

WAXP is currently available through the Tongatapu Bank, the commercial arm of the Central Bank of Tonga. It is expected to become available through additional channels in the future.

Conclusion

WAXP is a stablecoin issued by the Kingdom of Tonga. Its value is pegged to the US dollar, providing stability for users. While it may not have significant long-term investment potential, WAXP can be useful for daily transactions within Tonga and serve as a hedge against currency volatility.