Circle’s “stablecoin” just got a big boost from one of the largest retail cryptocurrency exchanges, but there’s a nuanced issue: the token itself isn’t regulated, at least as far as one of its overseers is concerned. On Tuesday, Circle—the peer-to-peer payment service that owns crypto exchange Poloniex—and Coinbase announced the launch of CENTRE, a consortium that aims to facilitate the adoption of stablecoins. Those are tokens that are supposed to be pegged to fiat currencies by holding them in reserves. Circle’s USD Coin (USDC) is being marketed as safe, allowing users to “move dollars anywhere in the world in minutes instead of days. Cheaply and securely.” What’s more, Circle’s status…
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It’s indeed possible: A regulated US dollar-backed token is launched
Dollar-backed tokens on the blockchain, minus the fears of scam or fraud
There’s a new crypto-asset available as of Monday morning, and it’s yet another effort to come up with a U.S. dollar-backed cryptocurrency. Called Paxos Standard (PAX), the new token is maintained by blockchain technology company Paxos. The firm endeavors to digitize different kinds of assets so that they can be traded anywhere at any time using the blockchain. For now, the company can securely track trades of securities and precious metals, but will expand to support commodities of any other type down the road. Its new PAX token is an important piece of this puzzle. PAX is one of a family of so-called “stablecoins,” those cryptocurrencies that are designed to…