Recently, 250 million new Tether were created, whereby the Stablecoin maintains its dominance in the field of price-stable crypto-currencies. CENTRE Project and Circle Pay have entered into a partnership to create a USD C coin that will be backed 1: 1 Fiat. This is, however, currencies are just the tip of the iceberg for this type of Crypto.
Competitive pressure is increasing
Tether is continuously criticized due to a lack of financial data is in fact secured to each Tether by a Dollar? If not, then you have created $ 250 million more out of nowhere. In Essence, use Stablecoins Tokenization, in order to create price-stable digital currencies in the Form of Fiat-money safe crypto-currencies. From the terms and conditions of use of Tether is, however, clear:
“Tether, have no money, and no money instruments. They are also not stored value or currency. There is no contractual right or other Right or legal claim against us, their Tethers against money redeem or exchange.“
Companies also use other types of assets for Collateral, such as, for example, other crypto-currencies, real estate or a mixture of several things. Trust token, a company based in San Francisco, has created a new stable crypto-currency, which is 100% guaranteed in US dollars is secured: TrueUSD (TUSD). The company has developed its own legal structure, and offers regular Audits to strengthen the confidence of the TUSD-holder.“
Decentralised stable currencies?
AirSwap collaborated with MakerDAO to the DAI Stablecoin on the decentralised AirSwap crypto exchange offer. The DAI Stablecoin is secured by an automated System of secured debt positions (CDPs) for a 1: 1 pairing with USD liquidity.
Boreal is supported by a combination of the ether reserves, loans and Dapp-advocacy. The currency running through the Aurora platform, which was created by the founders of the decentralized IDEX-crypto-currency exchange. The project finished its ICO-Token-sale in January 2018.
It was developed on the Ethereum Blockchain as a continuously innovative financial network. Augmint is working on a similar concept.
Crypto-currencies work towards a seamless international economy, you are still in an early Phase. It is not clear yet whether one of the above-mentioned stable coins will in the long term, enjoy. The work involved in the development of such highly complex systems, however, is, without question, of immense importance for the crypto-currency landscape.