Liechtenstein Bank To Launch Security Token and Stable Coin
It looks like the tiny country of Liechtenstein is quickly becoming a beacon for cryptocurrency and blockchain in Europe. Recently, the Union Bank AG has recently announced that it will become the first fully regulated bank to launch security tokens and stable coins backed by fiat currency in the world.
According to the official information of the bank, the new tokens will be issued under the guidance of the Financial Market Authority (FMA), which is the financial watchdog of the country. This announcement comes only a couple of days after the Liechtenstein Cryptoassets Exchange has made a partnership with Binance, the world’s largest exchange by trade volume.
The two companies are planning to mount a fiat-to-crypto exchange operation which will be backed by the prime minister of the country.
The plan of the bank is to become the first blockchain investment bank in the world by using these new cryptocurrencies. In the future, the company intends to be a one-stop for people interested in having blockchain solutions and using cryptocurrencies.
Currently, the bank, which is based in Liechtenstein, also serves Austria, Germany, Switzerland and the Middle East. At the time, the bank did not state in which currency the stable coin would be pegged on. It will be called Union Bank Payment Coin and it will be a competitor to other similar solutions like Stellar Lumens and Ripple.
The chairman of the Union Bank board, M. H. Dastmaltchi, has affirmed that this new token has the potential to disrupt the international trade and how cross-border transactions are currently done.
Liechtenstein To Become New Crypto Haven?
Union Bank will benefit from Liechtenstein's bullish stance on the blockchain technology. The country has one of the highest GDPs per capita of the world and has a progressive financial policy. Helped by the Blockchain Act, a framework created in March 2018 to help blockchain companies, the country is fully suited to support ventures like this one.
Being placed between financial centers like Austria and Switzerland, Liechtenstein is a banking powerhouse that is not bound by borders. This can be important for the blockchain technology to develop in this country.