Daniel Popa, the CEO and founder of Anchor, has had a successful career in tech spanning many countries dating back 20 years.

Here, he answers some questions from Coin Rivet.

Can you explain how Anchor differs from other stable coins such as Tether?

Tether is tied to the US dollar (1:1), a fiat currency. Fiat currencies depreciate in value over time due to inflation, so although USD is certianly more stable than cryptocurrencies and most other fiats, it does not protect against the impacts of inflation.

Anchor, on the other hand, is pegged to a proprietary algorithim based on the real growth of the global economy.

He says world GDP has increased steadily for the last quarter of a century.

So by basing its stable coin on the global economy, Anchor is not only safeguarded from the impacts of market volatility and inflation.

But it will actually appreciate in value incrementally each year in line with world economic growth.”

At one point, for example Tether was trading at below $1. How can you avoid this with Anchor?

The Monetary Measurement Unit [MMU] is intrinsically stable and Anchor is further protected by a safety net of six economic and financial mechanisms to prevent volatility and to ensure that Anchor’s value remains consistent and stable.

These are the Global Economy Pillar – the price of the Anchor token’s determined by the MMU algorithm in line with the stable growth of the global economy, the Daily Adjustment Pillar based on the FX indicator, which includes the exchange rates of 20 countries with significant share in world GDP.

Also, the Investment Pillar the capital (in cryptocurrency and fiat) that enters the Anchor system is invested in stable capital assets like sovereign debt, to bring additional stability and trust.

The Reinvestment Pillar – treasury bonds and assets acquired via the Investment Pillar generate interest which is reinvested into more assets without using Anchor tokens, which ensures greater stability and defends against inflation and devaluation.

The Algorithm Pillar when inflation happens the system uses a validated formula to readjust the value to keep the price stable. If all previous buffers fail to prevent fluctuations in value, Dock Tokens are issued in order to back the Anchor token and keep its value stable.

You’ve a highly successful career in tech and obviously have done well, so why the move into crypto?

I’m a serial entrepreneur with over 20 years’ of experience launching numerous telecommunications and software companies, including NECC Telecom, Pulse Telecom, ECS Soft, CCI, TimeWalk and others.

They have generated more than $1 billion in revenue and currently operate in five different countries. I’ve witnessed the need for a reliable financial standard and stable store of value – from the point of view of a businessman and investor.

My resolve to develop to develop a solution for the issues of economic instability led me to found Anchor and leverage the power of blockchain technology.

I’ve been working with my team of PhD economists since 2017 to develop the algorithm behind the MMU.

The capabilities for increased transparency and decentralised governance enabled by blockchain technology aligned with my mission to create a currency that would support individuals, businesses and entire economies to preserve and enhance the value of their investment holdings.

Do you regret not getting involved at an earlier point?

No, I don’t. I believe this market is still growing and that legislation is finally at a point where people can feel comfortable using a cryptocurrency.

Furthermore, right now, people realise just how important stability is, which wasn’t as apparent during the bulls runs of the Bitcoin and Ethereum craze.

The bear market shows which projects are built to last and which ones are susceptible to market machinations. So, I believe this is the best time to start talking about a project like Anchor, and the best time to get involved in a serious stable currency project.

Do you think the price of cryptocurrency has bottomed out yet or will it go lower? There’s been talk of $1200.

That’s a very complex topic. As we have all seen, cryptocurrencies are usually susceptible to all sorts of factors.

But if the current events keep going in that direction I feel they will, I can definitely see Bitcoin going lower, maybe even below the $3000 mark that’s psychologically important to holders, but likely not as low as $1200.

Does it matter that cryptocurrency is in an extended bear market?

The state of the crypto market has little impact on the development of our platform. The concepts behind Anchor are based more in economics and mathematics than driven by the ups and downs of the crypto industry. So, in a way, the fact that cryptocurrency is in an extended bear market may be a good thing. People who are tired of all this instability will recognise the value Anchor brings to the table.

Does there need to be more regulation before there’s mass adoption?

Mass adoption is more dependent on user experience than regulation. It took governing bodies a long time to catch up to the innovations born of the internet revolution. The US government is still sorting out how to deal with Facebook, for example. That said, more clear regulation will only further contribute to the growth of a thriving blockchain industry as entrepreneurs gain confidence that their concepts won’t face compliance roadblocks down the road.

Why is there so much suspicion from the general public?

As with any new innovation, people are suspicious of what they don’t understand. There is always a learning curve with early adopters educating the majority.

What can be done to assuage peoples’ fears?

When a novel innovation can be communicated in the context of what is familiar, the audience will be much more receptive. The audience for Anchor will be comprised of investors from both crypto and more traditional financial spheres, so it’s important for us to use finances and economics specific language in describing the benefits.

However, when it comes to make it adopted and used in everyday life, I believe their fears will disperse as soon as they see that our system works and that it remains stable day after day, month after month.

What potential do you feel there is with blockchain to change peoples’ lives for the better?

If leveraged effectively, blockchain technology has the capacity to empower people with more control over their own value. We recognise the need for a stable financial index and store of value, and blockchain technology can help us achieve our mission.

Who do you admire in the world of cryptocurrency/blockchain and why?

The spirit of innovation and the support this space provides to the self-starters is inspiring. I’m constantly awed by the myriad applications of the technology invented by the entrepreneurs around the world. Blockchain is pushing us faster down the road of progress, and I am grateful I can be part of this movement.