It is worth paying attention to blockchain and cryptocurrency this days. It may also be time to add stablecoins to the mix. In particular, Factom’s team is looking to build a new implementation that may shape the future of stablecoins completely.
There is not much known at this point concerning the platform’s plans. The team suggested that it has a project in the works, although it did not point to any specifics. Stablecoins are pegged to physical assets, such as fiat currency and precious metals. Most stablecoins on the market are pegged to the USD. One of the most notable exceptions though is Venezuela’s Petro, but it is currently facing a great deal of backlash due to the lack of transparency.
Factom’s recent research indicates that the platform’s current approach may be successful. It has a Factom-based stablecoin that it may release on the market soon. Further, research and tested is necessary to determine how to effectively commercialize the technology. The platform expects to perform an initial demonstration of the concept during the Texas Bitcoin Conference in late October.
Another question that arises is what the platform is trying to achieve. Many companies such as Gemini and Circle are issuing a dollar-pegged currency and with that, the stablecoin market may be oversaturated. While positive competition is good for everyone, it can also make things a great deal more difficult.
For now, it will be interesting to see how the cryptocurrency market will respond to the new offering. Though it is easy to understand why many companies want to participate in the stablecoin action, it is a market that requires a very competitive nature. Hopefully, Factom is up for the challenge.