Australian Dollar Pegged Alongside Stablecoin. Canberra : A brand new stablecoin, pegged to the Australian dollar (AUD), is set to be launched on the Stellar blockchain, targeting individual traders and businesses. The stablecoin will completely back in a 1:1 ratio with the trust-held AUD. Novatti Group is an Australian online payments processor. It announced on Tuesday at the Money 20/20 conference in Las Vegas. It will issue the Novatti AUD Utility Token from November 19.
While traditionally, Stablecoins have been a tool for cryptocurrency traders to move money quickly between exchanges. Novatti envisions it’s token use for more common use cases, like remittances or purchases. Rather than as a hedge against risk or to facilitate exchange trades. Australian Dollar Pegged Alongside Stablecoin. The stablecoin fever has been catching on for a while now. Recent launches include Circle’s USD Coin [USDC] – which Coinbase supported at the Money 20/20 conference.
Paxos’ Paxo Standard Dollar [PAX], the Gemini Dollar [GUSD] launched by the Winklevoss twins last month issued by TrustToken. “Fintech before crypto, specifically a stablecoin, is like mobile before the iPhone came along. Now that we have a programmable, real, stable currency, you will see the innovation take off in crypto”, Asiff Hirij, Coinbase’s president and COO, said at the Money 20/20 conference.
Peter Cook, Managing Director of Novatti, told CoinDesk, “We think that people will use them [stablecoins] to help purchase goods from Australian enterprises. And we think that will also use them for the payment of bills or for services inside of Australia”. Novatti, a licensed payment distributor, processes payments for clients such as Vox Telecom in Europe. Also, South African remittance provider MoniSend.
Cook said several institutions beyond Novatti’s clientele have reached out to express interest in the upcoming token. This is because using it requires a compliant know-your-customer identity check. “We will be working with licensed money service businesses, banks and enterprises, who want access to digital assets,” Cook said, declining to name which banks at this stage. “Novatti is a publicly listed company, it’s listed on the Australian stock exchange. So that should give [users] a lot of trusts.”
The news comes as competition among stablecoins heats up. This is with several new U.S. dollar-pegged tokens launching this year. It including Circle’s USD//Coin (USDC), Trust Token’s TrueUSD (TUSD), Paxos’ Paxos Standard Dollar (PAX) and the Winklevoss brothers’ Gemini Dollar (GUSD). All eyes have been on this niche for the last week, since the well-known stablecoin tether (USDT) fell below $1 and a number of exchanges quickly listed alternatives.
Indeed, Lisa Nestor, director of partnerships at the Stellar Development Foundation, told CoinDesk that Stellar already supports at least 10 stablecoins, including USD Anchor, created by startup Stronghold with help from IBM. Requests continue to pour in for Stellar to support new fiat-pegged options (known in the Stellar community as anchors), she said.
“There are network effects here, It took us almost a year to get our first two currency anchors on the network. But then each time we add another one, it makes it easier to add one more,” Nestor said. But the motivation to create these assets is also shifting, she said. “I think there was tension in the crypto marketplace, and that drove many of the earlier stablecoins. But we also see continued adoption and growth in the payments space.”
Australian Dollar Pegged Alongside Stablecoin. Despite the recent fluctuations in prices some believe stablecoins can offer faster and less expensive ways to send remittances.
“For example in Venezuela, even sending money through the banks gets exchanged at a horrible rate,” Venezuelan-born stablecoin advocate León Markovitz told CoinDesk. However, Markovitz quickly added that crypto startups can’t “fix a country’s economy on their own.”
Novatti’s token will be the first AUD-pegged crypto asset on Stellar, but not the first on the market. In September, the Australian exchange Bit Trade announced it was working with the employment platform Emparta. This is to launch a stablecoin in 2019 so employers can pay Emparta users with cryptocurrency.