News of the Week:
The State of Stablecoins 🙇♀️ Produced by Blockchain.com’s research team and led by Dr. Garrick Hileman, this 70+ page report takes a detailed look at the strengths, trade-offs and concerns associated with stablecoin problems. It gives an overview of the different stablecoin formats currently in use, their relative performance and provides insights into the regulatory landscape.
The cryptocurrency will be centralized and will operate under government supervision. Yet, a National Bank employee says that such a cryptocurrency is just a dream project for now: “The decision regarding the necessity of introducing an electronic hryvnia on a full basis will be made only after we conduct detailed analysis.”
-via Bits Online
First, most prominent firms, such as a16z, Sequioa, Union Square ventures, etc have made multiple multimillion-dollar bets on decentralized protocols and applications that have yet to either launch or pay off. Stablecoin investments are a form of insurance for their crypto portfolio companies. However, that is not the only reason. The longer-term potential for stablecoins and their wallets is to become retail banks and monetary systems in their own right.
As crypto assets have grown in their importance and adoption, it’s become vital to be able to use fiat currencies for payments and trading. A price-stable currency such as the US dollar (and similar stable currencies such as EUR, GBP, JPY, RMB, etc.) is critical for enabling mainstream adoption of blockchain technology for payments, as well as to support maturation in financial contracts built on smart contract platforms, such as tokenized securities, loans, and property.
Regarding Stablecoins, Zhao said “I think stablecoins are huge. I think people don’t understand the impact of regulated stablecoins. I said this at dinner as a joke: “If people understood the impacts, the Bitcoin price would be going up now.” Stablecoins are a very good channel for fiat money to come in and spread around the crypto space. So I think that’s a very very positive thing. And we’re always very pro stablecoin. We always want to promote and help them grow. I never pick favorites.”
-via Crypto Globe
A great piece by Alex Lebed, founder of StableUnit, reviewing the relative values of many national currencies from the 20th century up to the present. Emphasis placed on currencies that have failed as stores of value for the purpose of commerce.
-via Good Audience
“Stablecoins will help provide a real service to markets where the local fiat currency isn’t viewed as reliable and has failed to act as a reasonable store of value or medium of exchange”, says Vault CEO Ranjeet Singh, while admitting that it would just be an interim solution for citizens as the country’s political and economic woes are resolved.“We would expect that people from such locations would prefer to have the backing of gold bullion over anything else. Additionally being pegged to the US dollar, which is the preferred currency for international trade, allows these people to safeguard their networth and transfer it to jurisdictions they may not have access to directly.”
-via Brave New Coin
This post from r/CryptoCurrency got a few upvotes and it’s a good read on market sentiment. Overall, most redditors seem to agree Stablecoins are necessary to achieve mainstream adoption, but there is a huge need to educate the market.
The stablecoin rush speaks to a growing understanding that the volatility of cryptocurrencies like Bitcoin and Ethereum “is going to pose a problem” for some of the most sought-after blockchain applications, like payments, lending, and insurance.The hypothesis is that nonvolatile digital coins can form an “infrastructure layer” that could vastly expand cryptocurrencies’ global user base.
-via Technology Review
The merits of the crypto stablecoin lie in its ability to transport values across the globe quickly with reduced volatility and relatively low cost, but they fail to recognize and encompass the needs of the established “analog” world. This article explores these needs and expresses the views which led the author to create the stablecoin concept of ARYZE, an asset-backed stablecoin.
In response to Trump’s aggressive foreign policies and “weaponization” of the dollar, it is worthwhile for Europe, Russia and China to experiment with dollar-free business. And if indeed the US Dollar finds itself at a “tipping point” with a growing risk for a USD-centric system, how should investors protect themselves? Bitcoin?
A brief (13 min.) presentation by George Harrap, CEO Bitspark Limited, on the benefits of stablecoins for cross-border payments and how stablecoins enable the next wave of cryptocurrency adoption.
The first article from DigiX as a contributor to CoinMarketCap’s blog. From the CMC editorial desk: “We’ve heard lots about gold-backed tokens in recent times, so we wanted an explanation of the basis of these tokens. We turned to Digix (DGX), one of the first ICOs on Ethereum, to explain what it all means and how to think about gold standards on blockchain.”
In order for ICOs to be solidified as a legitimate and useful fundraising scheme, they need a stable unit of account. This will give certainly to both startups and investors about how much funds are being raised, how much the company is worth, and how much return investors are making down the road.
Today, StellarX has a real fiat onramp, a first for a decentralized platform. Also, today, StellarX shows tokens for Euros, Philippine Pesos, Nigerian Naira, Chinese Yuan, Hong Kong Dollar, and the British Pound, and they’ll add in-app deposits/withdrawals for these as soon as their issuers support their standards.
The London Block Exchange, which does over-the-counter crypto trades and operates a crypto exchange, said on Friday that it had received permission from an unnamed banking partner to launch a new cryptocurrency, dubbed the LBXPeg, backed by reserves of UK sterling. The one-for-one reserves will be held in an account at the third party bank.
-via Business Insider
In addition to immediate usage on Circle Poloniex and Circle Trade, more than 20 companies are also announcing or launching support for USDC today. Other wallets, exchanges, and software applications can add support for the USDC token through the open ERC-20 standard.
-via Circle / Centre
OnRamp Technologies has gone live with the world’s first fully operational and fully compliant fiat-backed AUD stablecoin. AUDR got the stamp of approval from Australian regulators on 8 June, making it one of the earlier projects to achieve that level of formal recognition.
Nice roundup of Singapore’s Blockchain Week, new hires and DigixDAO governance audits.
DigixDAO proposals will need an ETH collateral to be locked before creating a proposal. The concept of collateral has been widely observed in other DAOs too, for instance, DASH Governance.
Afellowship to allow people to participate in the Celo ecosystem from any location and for a flexible amount of time. Projects of interest include privacy, scalability, data usage, field experience in emerging markets, statistical science, among others. Learn how to participate here.
Updates on new hires, the Celo Fellowship, some technical updates, and upcoming events.
A brief roundup on the year’s developments thus far, and a look forward to upcoming developments this year like: Mintr, Multicurrency, FIFO queues, public issuances and EOSIO developments. It also looks beyond 2018 to developments in fee functions, oracles, governance changes and cross-chain support.
-via Havven Official
Recently, MKR holders voted on Maker Foundation Proposal v2. The vote was a pivotal moment for MakerDAO, the community and the Dai Credit System as it set the groundwork for Maker Governance. The vote was also notable in the broader world of DAOs, as it is one of the earliest examples of decentralized governance in action.
This post from a16z explains why the firm believes in the project and the team behind it, “We have been consistently impressed with Maker’s technical ingenuity, execution, community building, not to mention their thoughtful approach to regulation. Through our purchase of MKR tokens, we’re excited to partner with the Maker Foundation leadership and the broader community of Maker token holders in building a more accessible, inclusive, and stable global financial system.”
MinexPay has reached 23,057 MinexPay card pre-orders: 11,579 are Standard, 4,473 are Gold, 2,402 are Platinum, and 4,603 are Infinite. MinexPay is also inking a deal with a bank, details forthcoming. The post also updates on some new hires and integration developments with the MinexWallet.
MinexPay’s Platinum and Infinite cards offer 0.5% and 1% cashback for POS and online transactions paid out in MNX. Each and every pre-ordered MinexPay card will receive 15% of its initial cost on the MNX balance automatically, right after its activation. Check out their pre-order website to learn more.
Noku is thrilled to announce that EOS holders will be able to register and store their assets on Noku Wallet, after supporting ETH and thousands of ERC20 tokens already.
If you are in London this Tuesday, come meet Reserve Protocol’s CEO Nevin Freeman and CTO Matt Elder, as they explain the project’s goal to play the role of the British Pound or US Dollar, including the economics of price stability, the way blockchain “oracles” work, and the challenges of verifying code in advance of launch.
A response to the Sweetbridge’s community in response to some threads over the last day on its financial position and business discussions.
The South American BitInka cryptocurrency exchange has announced the integration of TrueUSD (TUSD) as the first stablecoin available for trading on its platform. BitInka CEO Roger Benites commented: “As our user base continues to grow, so does our commitment to improving options for purchasing cryptocurrencies, making it easier and more convenient for Latin Americans to enter the market.
-via TrustToken Team
TrueUSD and Republic Protocol, the dark pool protocol for trading large volumes of cryptocurrencies, today announced their partnership to bring TUSD to Republic’s first exchange, RenEx. TrueUSD will be the RenEx stablecoin of choice and the first stablecoin integrated into the exchange, continuing the momentum from other exchange listings resulting in TrueUSD becoming the market-leader in fully-collateralized USD stablecoins.
-via TrustToken Team