Stablecoin News of the Week:
EVENT: Stablecoins — Collaboration Towards Mass Adoption ⭐ Stable.Report is organizing a stablecoin-industry event that will bring together stablecoin issuers and stakeholders to collaborate around issues identified on our ongoing industry-wide survey. It will take place at the beautiful Reform Club and Army & Navy Club in London, October 25th. We would love to see you there, click here to learn more!
Puerto Rico’s Noble Bank Seeks Sale Amid Crypto Slide 📉 Noble Bank attracted attention in cryptocurrency circles earlier this year because of its willingness to work with Tether and Bitfinex, which was dumped last year by Wells Fargo & Co. The two crypto ventures, which share management, were subpoenaed by the U.S. Commodity Futures Trading Commission in December as the regulator examined whether Tether has more than $2 billion in customer money to back its stablecoin.
The only logical explanation to the drop in the price of Tether in the past 12 hours is a sell-off of USDT by large holders. As large USDT holders started to sell the stablecoin, its price dropped, causing a premium to form on USDT-to-crypto pairs. More on that here.
-via CCN Are Stablecoins Harmful to The Market? ❓ In the afternoon of September 27, Huoxun Finance, Three-Quarter Blockchain, ZOS, and +Chain Community jointly held a brainstorming session on stablecoins at the Wanli Center in Beijing. Guests were divided into groups of supporters, opponents and neutrals in terms of their attitude towards stablecoins. This is a summary of their opinions.
BitGo, a digital currency security and custodian service, accepts stable coins Gemini Dollar, Paxos Standard, and Circle’s USD Coin.
-via Fortune’s Ledger
All heads turned last week when A16z announced their investment on MakerDAO’s MKR governance tokens. The firm is betting that its partial stewardship of the network, as dictated by its share of MKR coins, will yield returns. The economics behind this are a little complicated, and this is an attempt at an explanation of how it might work in practice. -via Fortune’s Ledger
Skip to 20:00 for the interview that took place at Forbes Under 30 Summit
The Senate bill takes Trump’s executive order a step further, barring U.S. residents from providing software to the Venezuelan government as part of its efforts to launch the Petro. It also includes a section calling for a “report on the impact of cryptocurrencies on United States Sanctions.” The report, if the bill is passed and signed into law, would feature two main components. First, it would include details on efforts to use cryptocurrencies to evade U.S. sanctions. Second, it calls for “recommendations for new legislation and regulatory measures” aimed at stopping such efforts, “including through the direct or indirect use of products or services of United States based technology, software or financial services firms.”
Stablecoins are Now Officially in Vogue Again 😻 This article explores the direction where the stablecoin sector as a whole is heading, including the likely motives which this latest wave of big well-funded players — notably Circle, Gemini, and Paxos — could have.
-via Benjamin Ong
On Stablecoins, he had the following comments “The perfect stable coin is Bitcoin, once its volatility subsides…The interesting and successful stablecoins are the permissionless, full-reserve ones, but since you need parity or convertibility you are inevitably reliant on some bank or custodian. The only assets that are truly permissionless are native digital currencies like Bitcoin.”
-via Panama Crypto
We usually don’t share articles covering the basics of the stablecoin ecosystem, but this one is different and quite in depth, it covers the evolution of the space and its choke-full of quotes from the main projects in each category, and many more from Kowala’s CEO, Eiland Glover.
-via Bitcoin Magazine
An in-depth analysis of algorithmic stablecoins, using Basis Protocol as an example. Open ended bottom-line: The growth-backed stablecoins are printing free money that will eventually depreciate when the growth ends. This mechanism can become a Ponzi scheme if the growth cannot be sustained.
-via Fan Wen
Who will be the first to create truly mass-market digital money? The opportunity is enormous — we’re talking trillions of dollars and serious political power. Contender 1: Bitcoin, Contender 2: Stablecoin Projects.
-via Xen Baynham-Herd
In previous articles, USDVault has covered the idea that gold has been used as a medium of exchange for thousands of years and in the 1900s, the majority of Western currencies were backed by the commodity. Ultimately, it helped to define the value of fiat currencies and standardize global transactions. In this article, the team delves deeper into how mass adoption of gold-backed cryptocurrencies such as USDVault, can have wider benefits for global economies.
-via USDVault Cash, “Supernotes,” and Cryptocurrencies 🎙
A great conversation over the future of cash and the current state of cryptocurrencies, discussing the implications of issuing “supernotes” (like $500 and $1000 bills), the existence of stablecoins (45:00) and opening up the Fed’s balance sheet to the general public. Definitely a good listen, except for the fact that they quote Prof. Barry Eichengreen.
-via Macro Musings
An interview about what it takes to create a stablecoin — and why people might want to use one. It also touches on Tether and Ecuador’s dollarization in 1999.
For this week’s podcast, we had the gusto of chatting with Nevin Freeman from Reserve Protocol, we talked about the team’s motivations and journey, and a bit about Venezuela, Argentina and Savings Currencies.
-via Stable Report
Stablecoin Project Updates:
BOOTY Officially (air)Dropped Friday 🍑 The BOOTY token will now be used to pay the fees associated with all current and future SpankChain services. SpankChain will always credit one BOOTY as one dollar, making BOOTY well-endowed with the necessary stability for people who just want to buy adult content and pay for porn.
CoinLoad has added AdvCash payment system, that enables to deposit and withdraw USD, GBP, EUR and RUB on the CoinLoan platform. It’s been a long time coming, and now with AdvCash you can finally lend and borrow using the currency that works best for you.
-via Coin Loan
Gemini has secured insurance coverage for the digital assets they hold on your behalf in the online hot wallet. This new coverage complements existing FDIC “pass through” deposit insurance that your fiat funds (U.S. dollars) are eligible for. -via Yusuf Hussain
Custody Bot is intended to change the industry of pawnshops, as well as Lombard loans in particular. Pawnshops will be able to significantly reduce the cost of renting space, personnel and other associated costs, which will in turn reduce the cost of mortgage loans for 500 million of people annually getting them.
A brief explanation on Haven Protocol’s Offshore Storage, which allows users to preserve the value of their coins, without compromising on security, privacy, and decentralization unlike other stable coins. Offshore Storage allows for anyone to be able to effectively open a USD based bank account without a central bank and transact funds away from the prying eyes of government.
-via Haven Protocol
The Jcash soft-launch was executed seamlessly and now a strong push is being made to encourage adoption. Jibrel also refreshed its online brand with a new website, hired 6 new FTEs and is on track against all work-streams and product release schedules. Finally, they’ve included a very detailed technical development update to reassure the community that product development is on-track.
We missed this video in previous updates, where Andrew Maguire [member of Kinesis advisory board] explains how Kinesis Monetary System, which is backed by gold and silver, enables transactions and earns a yield.
MinexSystems is a company working on a wide range of blockchain products, this update is focused on the MinexWallet, a product that allows storing your crypto assets online without installing a desktop version and that is as secure as traditional wallets.
MinexPay has made a deal with ČSOB bank for the first MinexPay cards. ČSOB is one of the largest commercial banks operating in the Czech Republic since 1964. The post also has a visual infographic of their roadmap and links to purchase the MinexPay Cards.
-via Paxos Standard token
With pre-seed investment secured from a strong network of experienced angels across fintech and emerging technology — including Jerry Neumann, Taavet Hinrikus, Iyin Aboyeji, Village Global, Mucker Capital, and 99 Tartans — the team is preparing to launch the alpha of their API in the coming months.
-via Sila Blog
Tiberius Coin is a metal-backed token that can be traded, redeemed for actual metal, and used as a reliable investment vehicle. These metals are: Aluminum, Copper, Tin, Nickel, Cobalt, Gold and Platinum.
-via Tiberius Coin
Cohen & Company has published their latest independent attestation of the bank accounts holding the collateral for TrueUSD. The funds were examined on October 1st, 2018 and contained a balance of $102,736,868.02.
-via TrustToken Team