Prelude To The Global Crypto-Currency Race – ALTCOIN MAGAZINE
Current economic giants like GAFA are clearly aware of the situation. Some are already investing in stable coins, this type of crypto-currency that have their value pegged to another asset, be it fiat currencies, precious metals or a combination of different assets. It aims at solving the price volatility concern by providing a stabilization mechanism for the coin value, and then offer the needed predictability to generate mass adoption.
Stable coins have gained steam in the last few months, with JP Morgan and Facebook separately announced to create their own coins using private and permissioned blockchain to address the expensive and inefficient process of settlement. But there are currently more than 50 other existing stable coins, and more than one hundred in development!
This situation is naturally raising the interest of major digital companies, notably Facebook and Telegram. Facebook is willing to launch a new payments network called Libra. Its stable coin will be backed by a basket of government currencies, and the company is seeking for one hundred partners for this project, including payment networks Visa and Mastercard.
Through Libra, Facebook aims at creating the first global digital currency. It’s hoping Libra will become simpler to set up, more ubiquitous as a payment method, more efficient with fewer fees, more accessible to the unbanked, more flexible thanks to developers and more long-lasting through the usage of blockchain technologies.
In response to the project, the US House Democrats have requested Facebook to halt the development of Libra, until Congress and regulators have time to investigate the possible risks it poses to the global financial system. “If products and services like these are left improperly regulated and without sufficient oversight, they could pose systemic risks that endanger the U.S. and global financial stability.” Indeed, latest hearings on US Senate and Congress are showing a high reluctance from the US government to Libra network.
On the other hand, the global messaging app Telegram is also working on its own payment network, called Telegram Open Network (TON). It goes further with an ambitious blockchain meant to decentralize multiple facets of digital communication, ranging from file sharing to browsing transactions. The company has currently more than 200 million active users and has raised around $1.7 billion for both Telegram and its TON platform in 2018.
Published at Tue, 23 Jul 2019 00:39:25 +0000
Bitcoin Pic Of The Moment
By donpdonp on 2011-02-10 20:44:58
