New stablecoins: Gemini dollars (GUSD) and Paxos Standard (PAX)

The New York Department of Financial Services (NYDFS) has approved two new stablecoins. The authority to make the Gemini dollars (GUSD) and the Paxos Standard (PAX). So stablecoins of the Gemini Trust Company and of the Paxos Trust Company join the most well-known representatives of Tether now.

There is such a thing with the stablecoins – theoretically convenient, but practically questionable. It is however, the current debate around a mysterious Bitcoin-Wallet, which is suspected to have been recently a significant influence on the Bitcoin price. And, among other things, by unceremoniously threw money on the crypto – market with the digital money printing machine Tether.

The so-called “Stable-Coins” are tied to Fiat currencies – they represent your value. Now the New York financial has approved police two of these stablecoins.

Stablecoins in the cross fire of criticism

Critics of the supposedly stable value Coins have argued that these tokens were used to manipulate the Bitcoin price, which is why the NYDFS issued a number of demands. So Gemini and Paxos had to assure that you have your Token

“effective risk-based controls and adequate […] controls. So you need to prevent that the Gemini is used dollars or Paxos Standard Token in connection with money laundering or the financing of terrorism.”

The Gemini dollars (GUSD) and Paxos Standard (PAX)

The Gemini dollars (GUSD) is published by Gemini, the stock exchange, the Winklevoss brothers, Cameron and Tyler. Just like comrade-in-arms Paxos Standard (PAX) is GUSD as ERC-20-Token, designed on the Ethereum block Chain. Compared to CCN, Charles Cascarilla, CEO and co-founder of Paxos stressed that the expected benefits of the Stable Coins:

“Paxos Standard gives the financial markets the possibility to trade with the advantages of Blockchain technology […] in a complete of USD collateralised asset. We believe that Paxos Standard represents a significant step forward in the digital assets. […] In the current market environment, trust and volatility are the biggest barriers to the acceptance of digital Assets.”