Let’s face it – there is not much stability and security when it comes to cryptocurrencies, especially lately, after the volatile movements and the unstable prices on the coin market cap. However, the notion of a stable coin has already been embraced by the community – leading to “stablecoins” as the digital tokens that are intended to provide measurable stability and security.
The coins are “designed to be used as a unit of account and store of value”. Digitally, they would have a lot of broad and substantial implications in the fintech world.
However, according to Cryptolinks (and many other sources):
“Stablecoins are what allows us to realize the promise of blockchain technology. Any application which requires a low threshold of volatility to be viable on a blockchain, consumer loans for example, simply cannot be denominated in a currency which fluctuates 10–20 percent in a day, like Bitcoin and Ether. If you’re using Bitcoin to send a remittance from one country to another, there’s a good chance that the price movement over the period of one block confirmation (how long it takes the blockchain to include your transaction) will be larger than the fees charged by Western Union or PayPal.”
The main problem that remains is that no team on Earth has been able to develop a stablecoin that won’t compromise features of security or decentralization so far. However, there are a few companies making headways in the space right now. One of them is the TrueCoin Project that is building a USD-backed stablecoin that will be 100% collaterized, legally protected and transparently audited.
According to experts, TrueCoin will offer an alternative to Tether (a USD-based stablecoin that grew to $1.5 billion but is distrusted by crypto exchanges and traders) and offer improved monthly auditing, 100% collateral in USD and enforceable legal rights for every token holder – in a real set of bank accounts.
At this point, it is interesting to see how the development of stablecoins will go and how the different teams will take up on different technical and operational challenges.
Justin Sun Proves Crypto Is Not A Scam By Hiring A Former SEC Official
“We’re ready to fully embrace regulation here. We’ve just hired our first head of compliance, who previously worked for the SEC for almost eight years.”TRON’s founder wants to make sure that TRON is fully regulated in the United States but also Korea and Japan. He made a point that Blockchain is a like a new operating system and that the worlds need to embrace it and be more optimistic towards regulation. He continued saying:
‘’The SEC, I think also sees the blockchain as good opportunity for innovation in the United States. I’m hoping that this year the SEC will license and regulate coin-based exchanges. This year will be the year of full regulation.’’One of the ways that Sun can make blockchain mainstream is by launching the BitTorrent Token on the Binance Launchapd. BitTorrent is a file sharing protocol that serves 100 million users in more than 130 countries. Sun acquired BitTorrent for $126 million last year. However, former chief strategy officer Simon Morris of BitTorrent said that there is no possible way for the TRON blockchain to be able to handle the transactions conducted on BitTorrent’s network but at the end, he ended up being dismissed as an incompetent employee.
UN Thinks Bitcoin & Crypto Are “The New Frontiers” In Finance, Focusing On Ripple And IOTa
“Cryptocurrencies represent a new frontier in digital finance and their popularity is growing. The decentralized networks for cryptocurrencies, bitcoin being a well-known example, can keep track of digital transactions. They enable value to be exchanged and can give rise to new business models which would otherwise require significant regulatory and institutional commitments." the report states.According to the UN, blockchain and crypto have many use cases. As it is explained in the document:
"For example, a value token called ClimateCoin is being considered as a basis for creating a global market for carbon emissions, allowing peer-to-peer exchange of carbon credits and a direct connection with the Internet of Things. It would then be possible for devices to calculate their own carbon emissions and purchase carbon credits to offset those emissions."The document also focuses on innovation and how it comes from inherent trust, citing that "the innovativeness of this system lies in the way in which the various parts combine to create the trust and guarantees that the traditional financial system derives from institutions and regulation."
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