Australia Set To Get the First Dollar Anchored Stablecoin
The stablecoin will be rolled out in collaboration between Bit Trade and Emparta.
Details of Australia’s First Stablecoins
Australia is set to roll out an Aussie -backed stablecoin in 2019. The stablecoin will come alive following a collaboration with Bit Trade. The firm is regarded as one of the oldest operating crypto exchanges in the country. Additionally, Emparta a blockchain platform will also come on board to establish the stablecoin.
Bit Trade boss, Jonathan Miller noted that the Australian dollar anchored stablecoin will play a big role in covering the current market gap. The stablecoin is expected to act as a remedy against the volatility of cryptocurrencies.
Miller added that the rollout will play a key role is adapting cryptos as a mode of payment. He noted that the volatility has been the main reason why merchants revert to using the traditional currency. He said that with stablecoins, clients will have trust propelling the mass adoption of cryptocurrencies. Miller added that with Australia’s friendly environment for cryptos will back application anchored on the blockchain.
At the moment, the companies are fixing a prototype. The prototype is projected to be completed within one month. Emparta’s role in the creation of the stablecoin will play a key role in making the difference between the Australian dollar supported stablecoin and Tether. Tether is a top stablecoins in the country. Emparta said that the stablecoin’s base will be located in Australia.
Controversy Behind Stablecoins
The news comes just two weeks after Gemini announced the release of a stablecoin supported by the US dollar. Gemini is a crypto trading platform operated by the Winklevoss brothers. In the announcement, Gemini highlighted that its main goal was to act as a Tether supplant. This comes at a time when Tether came under fire due to trust related issues.
Despite the role played by stablecoins, they have not be received well. Following the launch by Gemini, influential figures raised quesries over the role played by stablecoins. Barry Eichengreen a senior scholar at the University of California laid some serious questions over the viability of stablecoins.
Eichengreen argues that collateralized stablecoins are expensive for firms that roll out them out due to the fact that they have to be supported by an equal of the asset that it is pegged to.