With the rise of cryptocurrencies, come stable coins. It has been a growing segment of the crypto industry since late 2017. Taiwan decided to not get left behind in the cryprocurrency game and is now backing a stablecoin based on the value of the New Taiwan Dollar (NTD)
Much like Tether, it holds the value of the fiat currency it is based on. A key difference is that it will operate on the Ethereum network and be considered as an ERC20 token.
Taiwanese Fintech firm Green World is the company behind the coin. It will be patenting its “dollar to token” process and will serve to effectively protect the coin from being used for fraudulent activity. The patent is its way of bridging the gap between fiat and crypto as well as getting the support of leading players in the Taiwanese financial industry.
The patent also serves to connect to banks and ‘trusted’ terminals. This will allow the coins to be transmitted only upon verifying the identity of clients. Although the company admits the hassle behind the process, it is convinced that this will stop money laundering done through cryptocurrencies.
A Good Time For Stablecoins
Green World further elaborated on how the system worked through a press release:
“The (user) registration process is then remitted to the trust account opened by Green Circle Technology in the bank through bank or super-business channels. After confirming the deposit of NTD, Green World will give the same amount of encrypted digital tokens (TWDT-ETH).”
Should the TWDT coin be launched successfully, it will be made available through both physical and online retail stores. The company also aims to make the project as transparent as possible. This will allow auditors to conduct reviews on the system as well as open the project to suggestions for improvement.
Last 2017 has proven that cryptocurrencies can be very volatile. This feature of the asset makes it less attractive when compared to stocks or other related assets.
Many companies shy away from cryptocurrencies because payments made today may not be the same anymore after just one day. Although there are now many conversion software based on blockchain technology to turn crypto into fiat instantly, only a few take advantage of these. Even then, not all cryptocurrencies can be supported since there are a too many of them in the market.
This is exactly where the stablecoins now come in – as a good, stable alternative. Some of the more notable ones in the market are Tether (USDT), TrueUSD (TUSD), and perhaps TWDT in the future.