One of the strictest regulatory bodies in the United States has just approved the proposals from two companies that are looking to issue cryptocurrency tokens whose values are pegged to the US dollar.
According to the statement published today, the New York Department Of Financial Services (NYDFS), which is also known for the creation of the “BitLicense” framework for cryptocurrency companies, confirmed that it had given official approval for issuing the so-called “stablecoins” to two chartered companies.
One of them is the Gemini Trust Company, which is founded by the Winklevoss brothers – and the other is Paxos Trust.
Right now, the most well-known stablecoin on the market is Tether (USDT), which functions as an altcoin most frequently used on cryptocurrency exchanges where it functions as a proxy for actual USD on platforms that don’t have regulatory authority to hold fiat currency on behalf of their clients.
The two new dollar-pegged stablecoins will function just like Tether (USDT). However, analysts believe that they can serve a larger role in international commerce – in the form of USD-denominated transactions which settle in seconds, versus the fiat transactions of actual dollars which use three or more business days to settle.
A superintendent of the NYDFS named Maria T. Vullo hailed the development as confirmation that these regulatory frameworks do not inhibit innovation in the fintech sector. According to Vullo:
“As the financial technology marketplace continues to evolve, New York is committed to fostering innovation while ensuring responsible growth. These approvals demonstrate that companies can create change and strong standards of compliance within a strong state regulatory framework that safeguards regulated entities and protects consumers.”
DFS Continues to Foster Responsible Growth in New York’s Fintech Industry with New Virtual Currency Product Approvals https://t.co/hG2jWTGsRc
— NYDFS (@NYDFS) September 10, 2018
More news about the official approval will come tomorrow – exclusively on DC Forecasts.
China’s Ping An Insurance Group To Build A ‘Smart City’ By Using Blockchain Technology
Blockchain ‘Smart Money’ Trialed By Australia’s Science Agency And Commonwealth Bank
“Our use of blockchain added new kinds of programmable behaviors to the smart money in the prototype system. This automation and flexibility could reduce friction and enable greater innovation in many payment environments and unlock network-effect benefits. This could include more directly connecting citizens to public policy programs, empowering people to optimize their spending through things like smart savings plans and smart diets, and reducing costs for businesses, including through the potential for self-taxing transactions.”This is not the first blockchain trial where the CSIRO was involved. Previously, the organization collaborated with the University of Sydney, testing a blockchain application on the cloud infrastructure platform of Amazon Web Services - finding that the application was able to achieve a speed of 30,000 transactions per second.
Iran Gets Removed From SWIFT, Considers Switching To Crypto As Planned
“The US has gone rogue, and cannot be allowed to dictate economic or political policy to the rest of the world. The sooner the rest of the world develops an alternative payments system – possibly working through SWIFT, but using a basket of currencies as the basis for a supra-national unit of exchange – the better. The USA is big enough to bully what should be an impartial means for monetary transactions between countries. This should not be possible.’’However, the Iranian Parliamentary Commissioner of Economic Affairs, Mohammad Reza Pourebrahimi, said that the country is working on a plan to involve cryptocurrencies as international payment methods cooperating with Russia. Already multiple businesses in Iran such as HotelsinIran which is a major booking platform started accepting cryptocurrencies as a payment method. Many experts believe that this is a perfect way for cryptocurrencies to gain mass adoption in Iran.
Amazon Wins Two Patents, Aims On Improving Distributed Data Storage/Signatures Protection
“The Merkle Root summarizes all of the data in the related transactions and is stored in the block header. It maintains the integrity of the data. If a single detail in any of the transactions or the order of the transaction's changes, so does the Merkle Root. Using a Merkle tree allows for a quick and simple test of whether a specific transaction is included in the set or not.”Amazon proposed the same Merkle Tree structure aiming to solve how to delegate signing authority from a central entity to multiple subordinates that will be authorized. The second patent that was first filed in December 2015, aims to solve issues related to distributed data storage. The patents suggest that these methods can help reduce storage redundancy but still allowing maximum availability. Amazon also filed for other crypto-specified inventions but we will find out more about them in the near future.
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