Dukascash Stablecoin Launches by Swiss Bank Dukascopy, Backed by Three Fiat Currencies
- New stablecoin will be launched in Switzerland, linked to three different fiat currencies.
- The official website is already available, and there will be a public testing phase of the stablecoin soon.
Reports circulated yesterday that the Swiss SIX Stock Exchange was encouraging the local central bank to launch a stablecoin that could be used within their country. Between that encouragement and the recent changes to the Libra whitepaper, it is clear that the market desires another stablecoin, and the Dukascopy Swiss bank is listening.
According to an article from Finance Magnates, the bank is revealing a new stablecoin that they have dubbed “Dukascash,” just four months after launching the Dukascoin, a cryptocurrency.
Dukascash is an ERC-20 standard token, hosted on the Ethereum blockchain, and the forex firm states that this is the first time a stable cryptocurrency coin has been made available for public use by a regulated and license Swiss bank.
This new stablecoin will be tied to a group of tokens, and its value will be supported by three major fiat currencies – the Euro, the US dollar, and the Swiss Franc. Every time a Dukascash is minted, the equivalent value is then purchased and stored in fiat-linked tokens, which will require significant oversight.
The bank wants to ensure that the public is given full transparency with their activities, so they have published the addresses for their reserves in fiat currency for the tokens. Those addresses, according to the Dukascopy bank, are:
- EUR+ 0x57dae83653dd99e876ff1f11b970c686b90a9a2e
- USD+ 0x3ecf807b8a10e053d5273312f2384e5d59f81057
- CHF+ 0x18aa37548adc1826411b5da2aa026e7e7af9ca4f
One of the other major benefits to the introduction of Dukascash is that the bank would oversee all of these transactions, and they are a quite reputable and trusted financial institution. Even though that oversight makes the cryptocurrency not that decentralized, there is the reassurance that financial authorities would recognize and accept the bank statements.
According to the new statement from Dukascopy, token issuance would first be a part of a public testing phase, and only “crypto industry professionals” would be involved at the time. Every transaction has to be at least 1,000 tokens with these professionals.
The official website for Dukascash is exclusively in English, but it offers a lot of information about the crypto product to promote more visibility and updates to the progress. The official whitepaper for Dukascash is due to be released, which will be open to the public for criticism.