The founding father of Chinese language cryptocurrency trade OKCoin confirmed its US sister operation, OKCoin USA, will concern a stablecoin backed by the Chinese language yuan (RMB).
Xu: Stablecoin Will Be ‘Totally-Compliant’
In a sequence of tweets, Star Xu, who additionally based each platforms’ mother or father firm, OKGroup, delivered a extremely bullish forecast on the way forward for the stablecoin market — which is seeing a number of market entrants this yr.
“Embracing the tide of expertise, the launch of a (yuan-backed stablecoin) is an inevitable pattern, and it’ll considerably enhance the internationalization of the RMB,” he wrote. “OKCoin USA will launch a totally compliant stablecoin.”
Embracing the tide of expertise, the launch of a #CNY backed #stablecoin is an inevitable pattern, and it’ll considerably enhance the internationalization of the RMB. OKCoin USA will launch a totally compliant stablecoin.
— Star Xu (@starokcoin) October 10, 2018
Curiosity in issuing a stablecoin tied to main fiat forex has thus far come from entities working principally within the US and Japan. As Bitcoinist reported, the Winklevoss Twins’ Gemini trade launched a USD-backed stablecoin asset in September, together with Blockchain Belief firm Paxos.
Within the Japanese market, web large GMO this week confirmed plans to launch its personal stablecoin backed by the yen, weeks after one other Chinese language participant pledged to increase $13 million for a yen-backed competitor.
‘100-Fold Improve’ In USD Penetration?
Going ahead, Xu mentioned he noticed enormous potential in cryptographic “digital cash” complementing fiat, each in China and overseas.
“(Stablecoins) are in essence digital money. They’ve the identical attributes. The central financial institution points the forex after which it’s distributed peer-to-peer. The distinction is it’s digital,” he wrote on Twitter. “At this time, the amount of money in China’s home financial system will not be small… The dollar-pegged (stablecoin) regulated by the US authorities will strengthen the penetration of the US greenback 100 fold.”