Australia is about to have its first native stablecoin that would be backed by the Australian Dollar.
Two big crypto players are involved in this one, as Bit Trade, one of the oldest cryptocurrency exchanges in Australia, partners with blockchain employment platform, Emparta, to create and launch the Australian-Dollar-backed stablecoin that is set to be unveiled next year. In a tweet from their official account, Bit Trade announced the new joint partnership with Emparta.
Jonathon Miller, currently the managing director of Bit Trade, has a lot of optimism for the yet to be launched stablecoin, as he believes the digital currency is poised to solve problems and fill gaps currently existing in the crypto market. The volatile nature of cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) is no secret by now and has been like that for years.
However, Miller believes the new AUD-backed stablecoin would act as a check and a buffer of some sort against the inconsistent fluctuations and wild variations that plague regular cryptocurrencies from time to time. Miller said in his statement:
“Stablecoins solve one of the principal issues that may drive investors seeking steady returns and merchants that currently accept traditional currency away from digital currencies: volatility.”
The stable coin does not focus only on the problem of volatility, according to Miller. He further explained;
“We believe that stablecoins will boost trust, accelerate wide-spread adoption, and could function as the backbone of blockchain-based financial applications, especially here in Australia given the favorable regulatory environment.”
Prototype for Alpha Test
The first prototype is yet to be completed but would be in the next five weeks, according to Miller, as the two keep companies keep working together.
Previously, there have been some reservations towards the use of stablecoin, and there are still. Tether is currently the most popular stable coin around and is interestingly the most controversial too.
That the stablecoin is backed by the USD currency as it claims has been questioned by many. Will the new AUD backed stablecoin suffer the same fate? James Hill, Emparta’s CEO is quick to disagree, as he points out the major difference which gives the Aussie stablecoin an edge over its potential rival.
What sets the local stablecoin apart from Tether is this: it will be fully redeemable on demand. Emparta is an employment-based firm facilitating payments to diverse employees with its technology. Hill explains:
“The first treasury will be based in Australia to support the first partner platforms – Bit Trade and Emparta Payments – and deliver the first Australian Dollar backed stablecoin.”