Australia’s First AUD-Backed Stablecoin Launches In 2019 by Bit Trade and Emparta
Stablecoins are some of the hottest cryptos in 2018. With the bear market sinking prices, it looks obvious that these companies are trying to carve their place in the market using stability as their main goal. The U. S. dollar and the euro already have their stablecoins and it looks that now it will be the time for the Australian dollar to do the same.
The first AUD-pegged stablecoin will be launched in Australia in 2019 and will be possible because of a partnership made by Bit Trade, which is one of the oldest crypto exchanges in the country, and Emparta, a blockchain platform. The two companies will join forces to design and launch an yet unnamed stablecoin.
Jonathon Miller, the managing director of Bit Trade, has affirmed that this new stablecoin will exist to fill a gap in the market as there is no option for this particular national currency so far and it can also be useful to prevent inflation. Stablecoins, he defends, are important for vendors to adopt digital currencies and for investors who are not looking for arbitrage opportunities.
He believes that stablecoins will drive investors to pay more attention to the industry and to serve as the backbone of the blockchain-based financial applications of the future, especially in Australia, as the regulatory framework in the country is very positive for cryptocurrencies.
The two companies are working on a prototype that will be used to create the final product right now. Our information is that it will be finished in about a month from now.
The main difference from this new AUD-backed token and Tether will be that you will be able to redeem your money fully and quickly on demand. The companies have also revealed that their initial vault will be located in Australia as a way to support the first partner platforms of the new token.
Bit Trade and Emparta’s new stablecoin appeared just after Gemini, the crypto company started by the Winklevoss twins, which will be backed by the USD.
During the announcement of its token, Gemini made it completely clear that it was creating this new stablecoin to supplant Tether, as it would offer the stability and trust that Tether was never to actually offer.
Not Everybody Loves Stablecoins
Despite being a sort of bridge between the crypto and fiat world, not all of the stablecoins have been greeted warmly by investors and economists. Barry Eichengreen, which teaches Economics at the University of California, Berkeley, has questioned the viability of using these tokens.
He believes that there is a great deal of expenses in fully collateralized tokens since every unit needs to be backed by an equivalent asset. The ones that are not fully backed, though, will hardly maintain their price in the market.
While some people like the professor have strong arguments against this type of currency, this will certainly continue to exist for a long time.