Binance creates new stablecoin (pegged to GBP)

Date: 
June 04, 2019
Read time: 
2 minutes

Are stablecoins the new rage? Seems as if large companies both in and out of the cryptocurrency sphere are getting onboard the stablecoin trend.

Are stablecoins the new rage? Seems as if large companies both in and out of the cryptocurrency sphere are getting onboard the stablecoin trend.

One thing is clear: the cryptocurrency space is blazing forward with innovation. No stopping it. Doesn’t matter if the crypto market cap goes up, down, or sideways -- entrepreneurs and developers around the world are innovating at lightning speed.

We’ve heard the rumors that Facebook is secretly experimenting with their own stablecoin -- pegged to the USD; they hired over 40 blockchain developers and are rumored to be targeting the $69 billion remittance market in India.

And we all remember how even a government -- Venezuela -- released their own stablecoin: the Petro; it was linked to the countries gas, oil, gold, and diamond reserves.

But this new announcement by Binance takes the cake: They are already testing their newly created stablecoin -- pegged to the Pound Sterling.

The new GBP-backed stablecoin will be a new asset on the firm’s native Binance Chain blockchain. And even though it’s a new asset which anyone can view on the firm’s blockchain, Binance CEO Changpeng ‘CZ’ Zhao has not given it a name, instead saying the new stablecoin is still in the testing phase, with “only £200 minted so far.”.

This news is quite significant. After all, the stablecoin arena is still very much in Tether’s favor (USDT). Tether holds over 78% of the nearly $4 billion worth of stable-pegged tokens in circulation on exchanges around the world.

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But CZ is trying to take on the whole market. A crypto enthusiast on Twitter asked about euro-based and USD-based stablecoins from Binance and CZ responded that the “euro has a negative interest rate” -- which would make things tricky.

Speaking of tricky things, all eyes are on Binance after this announcement for a number of reasons. Not just due to the technical challenges of launching a stable coin -- and keeping it stable -- but more importantly how Binance will back and hold a stable peg. After all, the legal and regulatory issues of backing a stablecoin are what landed Bitfinex in hot water with many crypto enthusiasts who decried Tether as a scam backed by nothing. The outcry grew so heavy that even the SEC stepped in.

Nevertheless, one thing is clear: the cryptocurrency space is blazing forward with innovation. No stopping it. Doesn’t matter if the crypto market cap goes up, down, or sideways -- entrepreneurs and developers around the world are innovating at lightning speed.

 

Posted by R.R. Hauxley

R.R. Hauxley traveled around the world ... 1 year on 1 Bitcoin. 20 countries, 12 months, 1 Bitcoin. He wrote a book about it: Stolen Wallets and Where to Buy Them. Along the way he met and interviewed the sharpest, brightest minds in crypto today: Vitalik Buterin, Charlie Lee, and more. Today Rafael educates the crypto curious and delves further into the incredible world of blockchain.

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