A new project for a stabilized cryptocurrency that would function "Like normal money," has received backing from Peter Thiel, Coinbase, Distributed Global, GSR.IO and 40 others, according to a press release shared with Cointelegraph June 20.The developmental-stage stable-value crypto project is dubbed "Reserve," and closed a collective $5 mln seed round to develop a fully decentralized cryptocurrency that works "By locking up other cryptoassets in a smart contract in order to provide backing to the Reserve token and stabilize its price."
According to Reserve co-founder Nevin Freeman, the seed funding was intentionally kept "Small," with the round focusing on partnership-building rather than amassing capital.
"The key piece of the Reserve approach is to use cryptoassets from outside of our own ecosystem to maintain a peg, especially at the start. The problem with supporting a peg via cryptoassets that are all within a stablecoin's smart contracts is that loss in confidence in that particular stablecoin can spiral out of control. We've worked hard to make that as unlikely as we can."
Reserve considers that a price-stable cryptocurrency would offer a solution for countries where failing fiat currencies and high inflation rates jeopardize citizens' savings.
While unpegged existing cryptocurrencies can already protect citizens from governments by being decentralized, their price volatility nonetheless limits them from serving most retail uses.
"Put simply: nobody wants to spend a token that may be worth twice as much next month to buy a carton of milk, and nobody wants to store their savings in a token that may be worth nothing in a year."
The project has notably sought an advising relationship with a financial services consultancy headed by a former Securities and Exchange Commission Commissioner, that also includes former officials from the CFTC, Federal Reserve, OCC, and Treasury Department.
Earlier this month at MoneyConf Dublin, Circle CEO Jeremy Allaire made a strong case for stablecoins in a "Tokenized global economy," giving the example of debt obligations as a key use case that would require denomination in an asset with a less volatile price baseline.
Unlike Reserve, Circle's focus is on fiat-stabilized coins - of which Tether is the most famous, if controversial, example.
Circle recently closed a $110 million fundraising round to partner with mining hardware manufacturer Bitmain on the development of its own US dollar-backed stable coin, reportedly to be released in summer.
Stablecoin Project Secures Backing From Peter Thiel, Coinbase, 40 Others
Publicado en Jun 20, 2018
by Cointele | Publicado en Coinage
Coinage
Noticias recientes
Ver todo
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.