Ethereum-Based USD-Collateralized Gemini Dollar (GUSD) Is First Stablecoin Globally Regulated

USD- Collateralized Gemini Dollar Becomes The First Stable Coin Globally To Be Regulated

Gemini Dollar, the first cryptocurrency from early Bitcoin investors Cameron and Tyler, has received a green light from New York regulators and will be backed by State Street investment bank. The stable coin, which is pegged to the dollar on a 1 to 1 ratio, has received positive feedback with Charlie Shrem, founder of the Bitcoin foundation terming it a solid stable coin and a golden gate bridge for the cryptocurrency industry. According to him, the coin, whose value is tied to the dollar, will eliminate the risks associated the digital coin volatility and enable more individuals to get involved in the cryptocurrency industry. As a solid stable coin, Gemini will also help increase users participate in the market without having to buy any particular cryptocurrency.

The benefits of having a stable coin have been known and there have been other players in the industry whose focus has been on the development of such coins to provide more access to the masses. Despite being an exciting development, Shrem recommends vigilance noting that stable coins remain risky as less than optimal stable coins could cause more harm than good. Meltem, a strategist for CoinShares also noted the resemblance of the Gemini coin to the already existing Tether coin. She notes that there are other similar projects underway but that USD backed stable coins have no natural demand.

The Gemini Dollar operates on the Ethereum blockchain as an ERC-20 token and is currently valued at USD 30 million. Governments have shied away from regulating the cryptocurrency industry despite their continued rise in popularity and growing adoption rate. This has mainly been due to the risk factors associated with the digital currencies. Gemini however is the first digital coin to be regulated. Its advantages include price stability and creditworthiness drawn from the underlying US dollar coupled with the benefits of a decentralized system and oversight by the US regulators.

How Gemini Dollar works

Users wishing to withdraw Gemini dollars can simply do so by transferring their coins from their Gemini accounts to an Ethereum address. Once such a transaction has been initiated, Gemini creates Gemini dollars and debits the US dollar amount from the user’s account to the specified Ethereum address. Conversely, to make a deposit, users initiate a transfer of their Gemini dollars into the Gemini account. The Gemini platform will redeem the Gemini dollars and credit their dollar amount to the users account.

The Gemini dollar makes it possible to send and receive US dollars. Traders are also able to quickly move US dollars to buy cryptocurrencies. The stable coin will also facilitate exchanges allowing them to list US dollar trading pairs more conveniently. Developers and merchants can also receive US dollar payments through decentralized applications.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Avatar
Bitcoin Exchange Guide News Team
B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,467FansLike
2,795FollowersFollow
4,232FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Here’s the Larger Trend that Will Continue to Persist in the Markets

Yesterday, the bitcoin price dropped by 6.6% as it went down to $11,150. Today, the prices went down even further only to make it...

Another Unaudited ‘Zero Value' Farming Token is Taking the DeFi World by Storm & Coins Flying

The cryptocurrency world has been much faster than the traditional world, and now the DeFi space is running at a quicker pace than...

DeFi-Focused Protocol, Chia Network, Raises Another $5M in Funding Round

Chia Network, a Layer 1 focused blockchain project, has raised another $5 million in a funding round led by Slow Ventures. This latest...

Coinbase Withdraws From Blockchain Association Shortly After Binance.US Joins

Coinbase withdraws from the blockchain lobbyist group a day after Binance.US, Binance’s American wing, joined the group. In a report first published by The...

U.S Banks and Big Tech Ask the OCC for More Clarification to Issue Crypto Services

The United States Office of the Comptroller of the Currency (OCC) has received over 90 responses from various stakeholders’ in the financial services sector...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today