BitcoinAustralia Fotor 775x500 - Australian Dollar Will Get Stablecoin in 2019

Australian Dollar Will Get Stablecoin in 2019

Next year, Emparta will be launching a stablecoin linked to the Australian dollar (AUD). The information has been released by the crypto exchange Bit Trade this week. The company will be partnering with Emparta to develop Australia’s first crypto stablecoin. 

Australia Will See New Stablecoin To Dollar

According to the official announcement, the company sees an interesting opportunity. WIth the stablecoin, Bit Trade aims to be one of the first to use this virtual currency. The press release compares stablecoins with other virtual currencies such as Bitcoin or Ether. It mentions that a stablecoin is not as volatile as other cryptocurrencies and that its value is backed by an underlying asset.

The managing director of Bit Trade, Jonathon Miller, said that the stablecoin will help the market find stability. Investors will have a crypto-solution that would allow them to avoid wild fluctuations in the crypto world.

In the statement, Miller explained:

“Stablecoins solve one of the principal issues that may drive investors seeking steady returns and merchants that currently accept traditional currency away from digital currencies: volatility.”

Additionally, he mentioned that stablecoins would accelerate adoption of virtual currencies. Moreover, a stablecoin combined with a favorable regulatory environment would be more than positive for the crypto space.

“We believe that stablecoins will boost trust, accelerate wide-spread adoption, and could function as the backbone of blockchain-based financial applications, especially here in Australia given the favourable regulatory environment,” he commented about it. 

At the moment, the firms are working on a prototype that could be completed in the next month. Additionally, the Emparta explained that the stablecoin would have a big difference with Tether (USDT). The AUD-backed stablecoin would be redeemable on demand. The first treasury of the stablecoin would be based in Australia. This is in an attempt to support the first partner platforms and deliver the stablecoin backed by Australian Dollars.

At the moment, there are several stablecoins available for traders in the market. For example, Tether (USDT) or the recently announced Gemini Dollar (GUSD), backed by the Winklevoss twins. Tether has been accused, several times, of not being solvent. And indeed, the company did not receive proper independent audits.

The Gemini Dollar works in a different way since it aims to be the first trusted and regulated ‘digital representation of the U.S. dollar on the blockchain.’

Some experts believe that more stablecoins would give the market more stability for the long term.

 

Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

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