TokenBacon to help enterprises to launch Stablecoin
It’s well known that the key functions of a currency are: (1) that its value is standardized,(2) it has a medium of exchange and (3)that it serves as a store of value. Cryptocurrencies excel in terms of the exchange medium aspect but are found lacking when you look at the other two stated functions. Responding to these issues, Stablecoins are a type cryptocurrency that has been developed specifically to hold a stable value. Stablecoin is linked to recognized existing assets and currencies that are considered stable, such as gold, the Euro or the Dollar. This means that every unit price represents a defined exchange value and level of acknowledged purchasing power. While in many ways it resembles Bitcoin as a currency, it doesn’t have the propensity to surge in value as Bitcoin does. As a result, Stablecoin can be regarded as a far more stable currency and better suited as a store of value, medium of exchange and unit for billing.
Stablecoin differs by being more stable than existing cryptocurrencies like Bitcoin. Users can enjoy all the practical benefits of a cryptocurrency without having to worry about sudden and upsetting price changes.
Over the course of the last few days, the New York Financial Services Department(NYFSD) approved two Stablecoins based on Ethereum: Gemini Dollar and Paxos Standard. Gemini dollars, known by the symbol “GUSD”, are anchored to the US Dollar on a 1:1 basis. Not only is the GUSD approved by the NYFSD, but is also insured by the Federal Deposit Insurance Corporation(FDIC), making it a legally compliant stable currency. GUSD is a token built on the Ethereum Network according to the ERC20 standard, which means all Ethereum wallets can support the token. Downloading an Ethereum wallet is much easier than going to a bank to open a dollar account and anyone with a network and a smartphone can easily send and receive GUSD.
The development of Stablecoins will greatly reduce the divide between cryptocurrencies and legal-currency based financial assets. This then has the potential to open up many new and exciting applications for cryptocurrencies. For example, an investor would be able to hold Apple stocks that are based on Bitcoin, without being in actual possession of any Apple stocks. Through the use of Smart Contracts, the amount of Bitcoin held will be adjusted to in responses to changes in the value of the Apple Stocks. The stability of the currency engenders a decentralized medium for investors to utilize cryptocurrencies to invest in a host of non-digital assets. We can also look forward to more related revolutions in the way financial markets operate.
In the coming future, Enterprise users will be able to employ TokenBacon as an issuer of Stablecoins. For detailed service plans, please contact support@tokenbacon.com
