Jared Tate, the founder and CTO of the Digibyte cryptocurrency says that they are working on a new USD-backed stablecoin launched on the DigiByte network. He made the announcement on December 26 on Twitter.
New USD Stablecoin Based On The Digibyte Network
As Jared Tate informed they are now working on a USD stablecoin based on the DigiByte blockchain. He explained that all the other stablecoins in the market such as Tether (USDT) or USD Coin (USDC), among others, are launched on ‘very insecure centralized networks.’
So its time we make the DigiDollar. A USD stablecoin lauched on the #DigiByte Blockchain. All these other stable coins are launched on very insecure centralized networks. Total junk.
— Jared Tate (@jaredctate) December 26, 2019
Tate mentioned that these stablecoins are controlled by a centralized group that promises to back these coins with money on a bank account that can be audited every a pre-defined period of time. However, users have to trust these companies about the funds they hold to back these tokens.
The proposal, which seems to be very interesting for the cryptocurrency market, aims at creating a new decentralized system in which users will back their own DigiDollars in real-time with their own bank accounts. This would reduce the trust that users need to put in centralized authorities.
At the same time, it would be possible to peg a ‘DigiDollar' in real-time to a specific cryptocurrency wallet or bank account using a smart contract and API that would confirm the real account balances. Thus, the control of the whole network doesn’t rely on centralized authority anymore.
In another Twitter thread, he stated that there are several attacks and valid criticisms to the network and whole proposal to work. Users claim that if the goal is to move away from fiat currencies and use digital assets, this is not a good idea to implement. Nevertheless, Tate considered that this would help bring more people into the whole market.
Banks could also decide to block API access to individuals that use virtual currencies. Moreover, AML and KYC are things that must be addressed as well.
There are many other critics about how the whole network could work and how it could not be 100% efficient. Nonetheless, it is very positive to have a new decentralized proposal for a new stablecoin in the crypto space.