- US CFTC Takes Civil Enforcement Action Against $11M Crypto Scam Circle Society
- Russia Blocks Leading Crypto News Site Cointelegraph
- Crypto Tracking Helps Uncover a Huge Global Child Porn Ring Based in South Korea
- Ethereum Price Technical Analysis (Oct. 17): Still in the Panic Phase
- Tokens Pegged to Nike's Sneakers Fall Sharply after Daryl Morey’s Hong Kong Tweet
The Global Currency Organization (GCO) announced earlier this month that a US Dollar backed stablecoin, USD Digital (USDD), will be released soon. The US Dollars that back the digital currency are mainly stored in deposit-insurance accounts.
The Global Currency Organization was started by former employees of TrustToken, Intel and JPMorgan. Since then the founders committed themselves to create the digital currency USDD to target institutional clients. They hope that with the new virtual coin, the company will be able to attract traders, crypto exchanges and over-the-counter desks because many members from these three groups have ardently advocated for such a stablecoin product but always failed to develop one.
In an interview, the founders of GCO said that fiat-backed stablecoin projects traditionally earned revenues from money or material that backed them. With USSD, they have reversed the model by sharing the revenues with an open network of institutional partners.
The San Francisco-based team also said that their organization would serve to bridge gap between the traditional and decentralized finance. The CEO of the organization, Joe Vellanikaran, noted positively that USDD would prove to be a great asset for routine traders who want an institutional-level digital currency. Blockchain technology, he said, offered immense benefits to everyone.
It should be noted that USDD is an ERC20 token that is based on the Ethereum (ETH)trade architecture. As an extension of Ethereum, it would allow real time transactions and much cheaper functioning rates to the traders.
While the creators of GCO busied themselves mounting an ambitious PR game for their product, serious news emerged from Europe where one board member of the European Central Bank (ECB) complained that stablecoins such as the forthcoming Facebook Libra can potentially be used to impede the priories of public policy in the region. For these stablecoins to operate, he said, a thorough compliance of terms and conditions should be met before any decision could be taken.
Prior Experience with Stablecoins
Vellanikaran had been working on stablecoins at TrustToken for many years. He acted as the general manager for leading the TrueUSD token project. This currency was also pegged to the US dollar.
Leveraging on the vast industrial knowledge, Vellanikaran claimed that he understood the real value stablecoins could bring to seasoned investors and individuals, especially to allow seamless transfer of funds in real time. These features are common among many other stablecoins.
Vellanikaran, who has in the past strongly advocated for more and more digital currencies, predicated that within the next 10 to 20 years, many digital currencies based on blockchain will spring forth owing to the institutional level demand for them.