eToro Will Launch Stablecoin in 2019 to Compete With USDC, USDT, TUSD and PAX
Attendees at the Finance Magnates Summit in London, may have observed that the Chief Executive Officer of eToro, Yonni Assia passing an important information while making presentations for the company.
In the presentation, he said eToro will create its own stablecoin in the year 2019, but it’s not yet clear when the exact release date would be. Also, eToro did not offer any further information about its new plans.
It is important to note that the information regarding the new development is coming at the end of a busy year for eToro. Over the last few months, the organization has among other things, orchestrated very important partnerships with a few football leagues, in the area of the advertisement.
In addition to this also, they revealed that they will establish a cryptocurrency that will give a percentage of interest to people who need loans.
What is a Stablecoin?
This is a cryptocurrency that is fixed to a conventional approved currency or a different form of asset, particularly on a person to person or entity to entity basis. What this simply means is that, for each Stablecoin, there will certainly be a €1 or $1 equivalent.
Other assets like real estate, gold and so on, can also be attached to stablecoins, depending on predetermined parameters. The creation and allotment of more stablecoins has been a groundbreaking achievement in crypto exchanges this year.
Just recently, Tether, the world’s first stablecoin, has seen increased volatility, probably as a fallout of the heavy criticisms it has endured in the last two years. Most of the criticisms were due to its inability to find a lasting solution to its lack of audit.
Naturally, the crypto coin has seen its value rise and fall in these past months, resulting in people wondering if the stablecoin will continue to be stable in the coming months.
A number of other stablecoins which have been made available to the public have been rightly introduced onto the mass market like Coinbase’s USD Coin (USDC), Paxos Standard and the TrueUSD, just to mention a few.
In addition to this, there’s increased activity relating to the creation of more stablecoins in the coming year. For example, Gemini just launched its own stablecoin called the Gemini Dollar.