The Gemini Exchange launches a USD stable coin
Tether looks to have a bit of competition in the near future.
Gemini, the crypto exchange backed by Tyler and Cameron Winklevoss announced that they are launching a dollar-pegged cryptocurrency.
They are naming it GUSD. After the Gemini exchange I am assuming.
The goal is to offer something that can be traded like a crypto but stable like the US dollar.
The exact quote from the Winklevoss twins:
"To date, there has been no trusted and regulated digital representation of the U.S. dollar on the blockchain. We are excited to bring the Gemini dollar to market, a stablecoin that combines the creditworthiness and price stability of the U.S. dollar with blockchain technology and the oversight of the NYDFS.”
Will this help the crypto markets?
Undoubtably so.
There has been a major hangover due to the lack of transparency surrounding tether and its roll in the crypto markets.
Tether has tried to show that it has enough dollars in its bank accounts to back the amount of tether in circulation but that is only a snapshot in time and there is a very real possibility that tether operates as a fractional reserve system.
Something that likely adds some systemic risk to the entire ecosystem.
Having a trusted and verified stable coin would help people move in and out of crypto much more easily without having to go through the fiat hoops and without having to use the uncertainty laced tether.
(Source: https://cryptovest.com/news/winklevoss-twins-issue-gemini-cryptocurrency-pegged-to-us-dollar)
But wait, there's more!
Besides the fact that the coin will be audited and open, it will offer one more major benefit.
According to the news release, the coin will eligible for FDIC insurance.
Meaning that people could feel just as safe holding GUSD as they would holding dollars in their bank account.
That is the level of safety we need to get to before people start really using crypto in a major way.
While the crypto markets have been pretty bearish for some time now and people's optimist has undoubtedly waned, under the hood the infrastructure continues to be built and things continue to advance.
We are getting close to seeing the light at the end of the tunnel in my opinion.
Stay informed my friends.
Image Source:
https://medium.com/gemini/gemini-launches-the-gemini-dollar-62787f963fb4
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Don’t really trust those twins; will have to wait and see if they deliver what they promise 🧐
They have pretty well so far, at least with crypto.
Stable like the dollar, meaning it will lose value... gradually?
zing.
It'll price the hyperinflation of the dollar.
That was tongue-in-cheek.
Tether and Block One as a whole is sketchy af so it's good for it to get some competition in the marketplace.
It is not transparent in the least. This should help change that.
How come most exchanges still lack a fiat proxy?
Is Gemini one of the zero fees exchanges?
How many items does it offer for trade?
Does it have STEEM?
No I don't believe it does. It offers only a limited number of coins currently, similar to coinbase. It has fiat on/off ramps which are a big deal. Yes they charge fees. They are only available in some states in the US but are currently looking to expand, also looking to expand the coins they offer.
So now we have a cryptodollar approved from New York State Department of Finance, thanks to Winkleboss twins for the attempt. It could be a problem when a cryptocurrency is regulated, cryptocurrency & pegged dollar are not same thing as I know. On the other hand, if scalability issues dissappear, it could be the leading coin. Lets wait & see, hoping it will help the crypto atmosphere.
At the very least it will make moving money around from crypto assets easier and easier.
the depreciation continues but will be valued again.
Yep, probably.
An interesting twist to see it FDIC backed for certain! That will definitely help institutions looking to experiment in the space for trading. However, I prefer something tied to a blockchain for even better real time transparency. There a couple I have heard about but have not see the same adoption as Tether because Tether has so many trading pairs already established. So the next step for a real alternative is to get more trading pairs and that will give Tether a run...
Yep, it will take a while and be a process. Though it might end up helping better build out the crypto infrastructure.
I take it as good news. I've used Gemini and they are legit. This should help with those who doubt if tether is legit or not. I think this will offer a great option for those who want something FDIC insured.
Yep, all good things.
This is an interesting development, but every smart contract platform is going to have its own coin pegged to the dollar (just like Dai/Ethereum/MakerDAO). And with these coins everyone will be able to lock the main coin into a smart contract and create the stable coin out of thin air. This such a superior system than anything the establishment can offer.
There's really no reason to trust a central authority anymore when it comes to pegging assets. Why trust a centralized agency when you don't have to?
Also, how could pegged assets possibly "compete" with one another? Theoretically, if you aren't operating a fractional reserve, there is no real advantage in having a bigger community use your stable coin. It isn't really Tether that's competing with anything. Only the centralized exchanges are competing to siphon fees from their consumers.
Very good point. If there are no inherent fees with a stable coin there is no revenue. It is just up to the exchanges to decide to use the ones that offer the most advantages for their platforms.
Many stable coins are now coming in simply the manipulation that caused by tether in the past will be eliminated