The Taiwan-based technology corportation Green World Fintech Service has made the official announcement that they’ll be launching their own cryptocurrency stablecoin. The token is going to be called the TWDT, based on ERC20 tokens that operate on the Ethereum network.
They will peg the coin on the Taiwanese Dollar. The system has some measures put in place to protect against fraud and money laundering through their patented dollar-to-token conversions, as well as tokens that can be bout online or through certain retail terminals.
The Growing Market For Stablecoin
One of the major issues that affects the cryptocurrency adoption is the volatility of prices. Many businesses feel uncomfortable on taking payments today, then to have the value of that payment fall significantly to the next.
While there are some solutions that works, allowing for instant fiat to crypto and vice versa conversions, a major portion of the general public is completely unaware of services like this. Another complication is in regard to not all cryptocurrency being supported.
Also, while being used for commerce, stablecoins are also needed for people actively trading. Stablecoins are able to be used to guarantee gains without the need of having to cash out fiat money entirely.
One of the developments that possibly occurred is likely to shake things up in niche marketplaces in Taiwan who could have privately released, fiat-pegged coins or tokens. This is how many cryptocurrencies are able to benefit users, minus the price volatility. A coin pegged like this will also convince unfamiliar users of cryptocurrency to test the waters on markets so to speak.
The main idea backing the token released by Green World is to make a cryptocurrency-backed platform that is simply an extension of EC Pay’s network that the company owns. EC Pay is also said to be one of the top three payment gateway processors in Taiwan. They benefit a market share that reaches nearly 70 percent in some areas of the country.
Anti-Money Laundering System In Place
One of the major concerns the Green World Tech Platform has is to take care of any potential cryptocurrency scams to launder money. The company plans to take on this challenge by putting a system in place that they’ve created and patented to make use of banks as well as other serious in-person sales points at specialized terminals.
Once the customer’s identity has been verified, customers are able to send money to what is referred to as a trusted bank account. It can be accomplished via a bank transfer or through paying cash at a retail point of sale terminal. Once the identity has been verified with the payment details, the coins will be placed in the customers wallet.
It’s an extremely thorough process, the company points out, they can effective stop laundering because each coin has a traceable point of origin.
Keeping A Solid Foundation
The official press release sates that company wants to put to rest any concerns users have on the possibility of there being an insufficient amount of Taiwanese Dollar reserves in comparison to coins released for the public.
The enterprise makes claims that they are taking adequate measures to provide total transparency, including those who willingly open their data to auditors, will be able to stop the concerns in their tracks surrounding the USDT. Also, the manner in how the coins are sold on exchanges for the TD will stop any fears the public has of the TWDT’s supply.
This is a vast difference of the infamous Tether, a coin that always seams to be under the ever-watchful eye of the entire cryptocurrency community. Bitfinex has parted ways from their auditors Friedman LLP, back in May, placing even more doubts in the minds of users on the amount of USD reserves actually backing Tether.
The new law firm-led audit did next to nothing to stop the fears of investors as it did not carry out terms according to “Generally Accepted Auditing Standards.”
Maybe Green World will have an easier time keeping the public happy, helping to fight off any potential conspiracy theories that take place.
What do you think? Would an audit be healthy for stablecoin and be a positive addition for the cryptocurrency marketplace?