Here Is The Cost Of Answering The Call Of The Economic Times, All About EURST Stablecoin

Developments In Stablecoins

Rapidly transforming the financial landscape with the nascent industry failing to fit any conventional classification to become an asset class of its own is the technological developments brought about by the invention of blockchain, bitcoin, and cryptocurrencies. 

Stablecoins Are the Solution

The digital currency industry has been beleaguered by wild market fluctuations, frauds, theft, and infested with criminal activities is tumultuous as it was in its journey towards the mainstream. These unprecedented economic times showcase new possibilities and technological opportunities despite all these the sector is proving itself resilient. With the rapid increase of internet users, the constant push to expand this industry has been facilitated. Leading affected countries having to pin down COVID-19 guidelines which in turn has accelerated the pace of users turning to the Internet for social connectivity, conducting financial operations, and seeking economic capabilities is the series of lockdowns accompanied by imposed containment policies. 

Stimulating their awareness and eventual participation into the workings of the whole cryptocurrency ecosystem that becomes a point of preference over the physical fiat as it then presents one dominant factor thereby providing users control of their financial individuality is their constant online exposure. It has also led to the creation of a new promising form of a digital currency, the stablecoin as not only has the cryptocurrency ecosystem caught the eye of financial operators. 

Stablecoins were created to address many of the issues surrounding the novel asset class just when the volatile nature of digital currencies was about to drive potential users, traders, and investors away. Functioning without any third party and under the auspices of blockchain and distributed ledger technology, firstly the stablecoins remain to be decentralised. By pegging it to the fiat reserve like the USD, EURO, or a basket of assets, secondly stablecoins significantly reduce crypto volatility. At any time, anywhere, lastly, they empower the user to control ownership over personal wealth, funds, and assets. Leading Mr. Simone Mazzuca to create EURST, which was introduced in last week’s article, ‘EURST Stablecoin – Reinvention of the European Economy’, this concept driven by the knowledge of what comes to be an obsolete financial system thereby with the flawed foundation upon which Euro is leaning on. 

Coming from obscurity these stablecoins are the hottest topic of discussion thereby being brought about by the recent US draft bill proposing that these stablecoin operations are to be deemed illegal without prior Federal Reserve approval and licensing and FDIC insurance as with any nascent technology. Meaning stablecoins become a type of deposit as the bill would also require stablecoin issuers to obtain a banking charter. It was here thereby that the STABLEact is now out protecting those consumers from the risks that are posed by those emerging payment instruments similar to Facebook’s Libra as well as other stablecoins offered in the market after regulating their issuance and the related commercial activities as are those principal authors of the draft law, Democrat Representatives Rashida Tlaib, Jesus Garcia, and Stephen Lynch. 

Referring to stablecoins backed by global tech firms, in another platform, Cristine Lagarde, the president of the European Central Bank was sharing her view and is troubled that stablecoins could threaten financial stability and monetary sovereignty. 

As Simone Mazzuca says actually what stablecoins are addressing are contentions against stablecoins. 

EURST Gets the Job Done

Secured by the Federal Reserve and Wallex Trust, the EURST custodian that employs DLT in its blockchain infrastructure is EURST for its part which is a live audited stablecoin backed by 1 Euro worth of USD. Reserves are readily convertible on-demand as users are assured. 

Especially when it comes to securing clients’ assets, working on the project of EURST for over a year, Mr. Mazzuca made sure that EURST does its job. That which portrays nothing that the STABLEact authors and the ECB should fear, this was done by adopting the 5th Anti-Money Laundering Directive and the Know-Your-Client procedures. Since it has practically eliminated costly fees and snail-paced processes that clients would typically experience in the present financial system, the unbanked and the undeserved will most benefit from EURST. 

As Simone Mazzuca now says, about the true nature of digital currencies, the bill is currently creating damaging confusion. 

From its inflationary nature that stablecoins seek to address, bitcoin was created to release a currency. Providing many solutions like the issue of double-spending, smart contracts, and quick and fast processing is now the technology behind stablecoins. The fear may be unfounded whether pegging of stablecoins is the assurance that assets are secured. If they could be considered as a substitute for currencies, one may argue that all stablecoins should be pegged to the US dollar. Eliminating any potential political or economic influence would create a whole and united front end for the development of stablecoins. When the aim of the STABLEact comes to be regulating Facebook’s LIBRA with its fantastic scope of draconian ideals, it is that the draft law hurts the ones already providing effective niche solutions to the thereby existing financial system. 

Concluding The Discussion

The STABLEact could diminish technological advancements and blockchain developments creating more harm than good in case stablecoin issuers are not able to acquire the operational structure and licenses EURST achieves. 

The protection we need is for technology to keep on advancing and progressing to finally eliminate what has been burdening the people for so long and it is security and equality in the financial systems as therefore Mr. Mazzuca believes.