Two Australian blockchain firms partner to introduce AUD-backed stablecoin
Two blockchain based firms in Australia have joined forces to launch Australia’s first stablecoin by 2019. The stablecoin pegged to the Australian dollar will be jointly developed by Emparta, a blockchain based employment platform, and Bit trade, a crypto exchange trading since 2013.
Emparta strives to help the employers around the world hire and pay employees using the blockchain technology. The company intends to use the stablecoin to make payments easier for employers. “An employer will pay wages in traditional fiat into a nominated treasury account, which receives the money and mints the stable coin. When the person receiving the payment wants to redeem the funds, the coin is ‘burnt’ and money is sent back in Australian dollars,” said James Hill, the Chief operating officer of Emparta, according to a Business Insider report.
The stablecoin is a work in progress. Emparta is planning to launch a prototype in about five weeks, according to Hill. Hill explained that after the launch of the stablecoin the company will provide the option of receiving the funds in a combination of 90% stable coin and 10% Bitcoin. The employees also have the option of transferring these Bitcoins to their family who resides abroad.
On being queried about the potential banking partners Hill said, “We haven’t signed a deal with any of them yet, but I will say there’s a lot of smaller banks outside of the big four who have expressed interest in this space.”
The AUD pegged stablecoin will be first released in a treasury in Australia. However, the infrastructure can be executed in any market to mint stablecoin s powered by any currency. “Our stable coin is designed for cash-based redemption and has a treasury collateralized with fiat currency,” said Emparta CEO Adam Sarris.
Stablecoin also referred to as the “Holy grail” of the financial technology. This coin strives to serve the function of both crypto coins and traditional financial assets. This implies that it facilitates anonymous digital transactions and also guarantees customers price stability. “Market volatility in the digital currency space makes a stablecoin a very attractive refuge for investors seeking stable returns, and marks a new way to access digital currencies in Australia”, said Jonathon Miller, managing director of Bit Trade.
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