DFC

Dai, launched in 2017, seeks to dodge such concerns by giving up control of the ethereum coins its value is tied to, locking them instead in the blockchain contracts run by algorithms. That, supporters say, offers the benefits of stablecoins - instant transactions and steady value - while avoiding governance risks.

The MakerDAO project launches its upgraded multi-collateral Dai stablecoin today. To the relief of many, it will not include traditional assets as accepted forms of collateral just yet. Cryptocurrency Exchange, Coinbase, has already announced support for the upgraded token from 2nd December.

"The release of Multi-Collateral Dai (MCD) is only 10 days away and will mark a huge milestone reached for the MakerDAO project. MCD will introduce exciting new features to the Maker Protocol, including the much-anticipated Dai Savings Rate (DSR) and, of course, additional collateral asset types. "

"The truth is that with M-pesa Safaricom has created something of a parallel currency system. A currency system which, as it happens, only Safaricom via M-pesa controls, since only it can create or extinguish M-Pesa units."

"Libra could do to central banks what Uber and Lyft did to the taxi cartels—bust up their monopolies, or, to coin a phrase, give them a run for their money."

"Libra may become an alternative for certain cross-border payments, but will probably not be used for payments in Sweden to any great extent. These are some of the conclusions drawn in a recent Riksbank Economic Commentary."

This is the fourth part in an article series by the Human Rights Foundation on privacy and cryptocurrency. This part in the series will explore private methods for acquiring cryptocurrency and stablecoins in different areas of the world.

This paper systematically discusses general stablecoin design, decompose existing stablecoins into various component design elements, explore their strengths and drawbacks, and identify future directions.

U.S. Congresspersons Sylvia Garcia and Lance Gooden introduced the Managed Stablecoins are Securities Act of 2019. The bill would clarify that “managed stablecoins” are securities under the Security Exchange Act of 1934 and thus regulated by the SEC.

The U.S. Financial Crimes Enforcement Network views all stablecoins, whether backed by a currency, a commodity, or even an algorithm, as falling under their remit to protect “money transmission services, and all stablecoin administrators must register as a Money Services Business with FinCEN.

Issuers of today’s fiat-backed stablecoins (such as PAX, USDC and TUSD) need to identify (or KYC) only those users who convert between bank account money and stablecoin, not all holders."

"How long will regulators allow pseudonymous usage of stablecoins to continue? FATF regulations are supposed to be technology-neutral. So far FATF hasn't had much to say on stablecoins. But you can be sure that something is in the works, and it isn't likely to be good for stablecoin operators. The problem is that granting permissioned-pseudonymity to stablecoin operators contradict technology-neutrality. It sets one set of standards for bank accounts and another for stablecoins."

MakerDAO has launched the multi-collateral version of its DAI stablecoin. But despite the rapid growth of the sector and the diversification of assets involved, DeFi is still influenced by a handful of central players: Namely, Polychain Capital, a16z, 1confirmation, and unknown MKR whales. With governance decisions largely influenced by those with the largest stakes to lose, some crypto veterans are pushing for a closer examination of MakerDAO's marketing directives.

MakerDAO is a protocol behind the stable coin DAI — a cryptocurrency that maintains a 1:1 peg to the USD. Think of 1 DAI as $1. What makes it unique is each DAI is backed by Ether instead of a 3rd party claiming to have the required collateral. Since Ether is volatile this poses some interesting challenges to maintain the peg.

To reduce the risk of any single stablecoin becoming systemically dominant (and simply replacing a fiat hegemon with a digital one), there should be an emphasis on interoperability and frictionless exchange across blockchains. Blockchain interoperability can increase economic and transactional scalability, speed and security.

Here's a comprehensive list of all 235 stablecoin projects launched so far. "Launched" is an important distinction because the list includes closed projects (e.g., Basis). It also includes commodity-backed stablecoins (mostly gold) and private coins.

This column proposes locking stablecoins into an ETF-like structure with restrictions on basket composition. Stablecoin providers would be functionally similar to ETF sponsors, and stablecoins would become a new vehicle for traditional fiat currencies.

"As digital assets transcend national borders, what does this mean for those interested in issuing or participating in a stablecoin project? What are the regulatory questions and other challenges that need to be considered? We take a look at the global picture in this comprehensive analysis."

LIFEtoken is a digital currency on the Ethereum Blockchain. LIFElabs is building an ecosystem for digital currencies to be accessible to all but also a multifaceted platform for social organisations to adopt Blockchain technology to support their own projects.

Despite defections, his cryptocurrency project still has the support of 21 organizations and has more than 100 of the social network’s employees working on it.

In effect, gift cards can be seen as a sort of stablecoin which are available for purchase on nearly every street corner in the world. Additionally, as you will find out later in the article, the people using these gift cards as stablecoins often don’t even need to know what a stablecoin is or how cryptocurrency works.

Facebook’s Libra represents American interests to the point that it can be considered a digital currency issued by the US Federal Reserve, according to Long Baitao, executive deputy director of Tsinghua University’s blockchain research institute.

We’ve often argued that a stablecoin is nothing more than a glorified exchange traded fund (ETF). So when it comes to the fuss about how to regulate stablecoins like Libra, is it possible that most of the hard work has already been done on account of the regulatory environment that governs ETFs?

Saga is launching a virtual currency which pegs its value to the basket of currencies that form the IMF’s special drawing rights. The U.K.-based company’s advisory board includes the likes of Nobel laureate Myron Scholes and J.P. Morgan’s Jacob Frenkel. But the firm doesn’t plan to launch its token in the U.S. yet, claiming it doesn’t currently have the regulatory clarity required to do so.

Under the original Libra white paper, Libra Association members would receive dividends for profits generated by reserve assets, which created an incentive for decisionmakers to invest in risky assets for higher returns, at the expense of the retail public. However, in the new version of the white paper, interest earned from reserve assets will not be used to pay dividends to investors.

Payment processor BitPay has announced it is adding three USD-pegged stablecoins to its list of supported tokens (USD Coin (USDC), Gemini Dollar (GUSD) and Paxos Standard Token (PAX)).

Equilibrium’s EOSDT is now backed by smart contracts that pay out consumers if the dollar-pegged token crashes through its collateralized floor. Much like how America’s FDIC insures consumers’ traditional bank deposits against a run.

Terra announced its stablecoin issuance protocol would act as Mongolian messaging app memeChat’s new financial backbone. That app, which has attracted 50,000 users since its March launch, now features the Terra-backed memePay payment service as well.

A New York Supreme Court Appellate Division filing claims that Bitfinex and Tether (which share executives and shareholders) had gradually been depleting the reserves backing Tether's USDT stablecoin, by first by going from actual cash in hand to $625 million in an inaccessible Crypto Capital account, and then by replacing that with a $625 million IOU from Bitfinex. That debt, said the NYAG, “seemed unlikely to be repaid,” as Bitfinex required the funds for withdrawals on its exchange.