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Varying Reference Currencies
In the examples provided above we assumed for simplicity that all networks in the Clearing House rely on the same Reference Currency. In most cases however, participating networks may utilize different Reference Currencies.
To accommodate for this, the BoT accounts of networks participating in the Clearing House are denominated in one common unit of value (The Swap Token), such as cUSD or another agreed upon stable unit of value. The Proxy Accounts of participating networks then mint or destroy Stable Credits according to the exchange rate between their Reference Currency and the Clearing House’s Swap Token.
Note that no actual currency conversions need to occur. Exchange rates from Decentralized Exchanges are used to instruct networks on the amount of Stable Credits that need to be minted or destroyed.