Stable coin concept that is supported by government debt secures US patent
Stable coin concept that is supported by government debt secures US patent
- The Yuga Stablecoin is covered worldwide by treasury instruments in the respective country.
- It is also included in the official identity examination standards.
So far there have been many stable coins that are bound to Fiat or less volatile assets such as gold! For the first time we will have a stable coin on the market that is covered by government debt such as government bonds and bonds.
Two co-founders of digital FV Bank based in Puerto Rico said that they secured the US patent for the output of stable coins covered by government debt. The patent application submitted last year in the USPTO describes the StableCoin as a "tokenized crypto-asset, which is covered by government debt".
The patent nits Nitin Agrawal and Miles Paschini as the inventor of the StableCoin named Yuga Coin. In conversation with another publication on this development on Tuesday, July 20, said Agrawal:
Our goal is to create several stable coins that are government-friendly, know-your-customer (KYC), anti-money laundering and financial action task force (FATF) based on various currencies.
Users can redeem the Yuga coin in a ratio of 1: 1 against any corresponding national currency. In addition, each of these Yuga coins should be covered by national treasury in the respective country.
First, the discount of the Yuga Coin will be done either in US dollars or in euros. These stable coins are traded in a controlled network that also reduces the risks of trade with certain opponents.
The developers of Yuga Coin are firmly convinced that it is more stable than other Fiat alternatives currently on the market. They argue that the Yuga coin does not depend on a single bank company offers the collateral. The patent states: "The stability of the tokenized crypto asset is more likely to correspond to the stability of government debt".
Yuga Coin-a market in the blue ocean
In contrast to the Fiat-bound stablecoin market, which seems to be extremely overcrowded, Yuga Coin is building a new blue ocean in space. The market for such a stable coin that is linked to the government debt is currently quite scarce.Agrawal adds that banks keep all -off stable coins all funds in government papers without partial reserves. But with Yuga Coin they want to completely eliminate the lines of the banks.
The latest development comes at a time when the US regulators are willing to initiate strict measures for stable coins. The US legislator has given security and data protection concerns when using stable coins in the state's financial system. On Monday, US Finance Minister Janet Yellen raised a red flag and demands immediate regulations. In addition, the chairman of the Federal Reserve, Jerome Powell, expressed similar concerns.
Agrawal said that Yuga Coin will integrate identity examination standards authorized. It will also contain risk assessments that are similar to the FICO credit ratings that are available in traditional finance. The inventor said that a regulated and trustworthy authority will verify the Yuga coin.
The debt -based stable coin will have several applications. These include transactions between governments and companies, intergovernmental transfers, global B2B and B2C transactions as well as value storage.
"This is the only way to make StableCoins more government-friendly that promote innovations in banking, payment, financial, capital market and asset registers by using blockchain," said Agarwal. "Crypto is a solution to all problems of money laundering control in the world and this project offers a way to achieve this."
Source: Crypto-news-flash.com
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