Category Archives: Coinjar

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Coinjar Sees Bright Future for Stablecoins

The CEO of Australian Bitcoin Exchange Coinjar maintains that stablecoins are due to become a major investor attraction.

Asher Tan has left Melbourne-based Coinjar co-founder Ryan Zhou in charge of Australian operations and taken up residence in London’s Canary Wharf. He clearly has a good view of London’s crypto horizon from his 39th-floor workspace on the banks of the Thames. He likes what he sees.

The interesting thing right now, what’s on everyone’s lips, is what you call a stablecoin. A stablecoin is a coin pegged to a currency, usually the US dollar. It’s a craze right now,” Tan says. “It helps you transfer money around the crypto ecosystem at a stable rate. But there’s a whole lot of applications or use-cases that could come out of it.”

Stablecoins are seen by some as a safe hedge against the volatility of conventional cryptocurrencies such as Bitcoin or Ethereum. Currently, they are underutilized apart from traders using them to guard their positions during bear markets. The most topical of these were introduced after the Winklevoss twins were knocked back by the SEC after their last ETF submission was turned down, only to hit the market with the stablecoin Gemini. The brothers also have their eyes firmly set on the London market as their next potential stablecoin project.

Japanese banks favor a stablecoin method which involves simply storing an equivalent amount of dollars and offering a tokenized version of that amount. Tan suggests that until now, the custody model has certainly been easier than more complex decentralized ways of maintaining a peg but tech startups are now looking for a better more effective and innovative model.

“How do you keep a peg? These are things that usually only a central bank would have thought about five years ago, and now you’ve got tech start-ups looking at economics, and how can you peg a currency to a token. It’s fascinating,” says Tan.

Tan sees dollar digitalization by exchanges at some point in the future as a faites accompli and he is now considering how stablecoins would fit into his future plans for Coinjar, arguing that Europe is the ideal base from which to operate:

“If you go regional in Asia there’s that fragmentation – all the different regulators, the cross-border challenge. Europe is a well-regulated environment, like Australia… We don’t want to create a product and then find out that the regulator is taking an unfriendly approach.”

 

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1 in 4 Hong Kong Residents Would Invest in Crypto

A survey conducted by the Hong Kong Blockchain Association (HKBA) has revealed that 23% of Hong Kong residents would consider investing in cryptocurrencies, given a recession.

The response was based on the fact that many respondents anticipated a downturn in the world economy within the next year. Reportedly, a large portion of those surveyed would consider investing in cryptocurrency, despite their current concerns about digital currencies outweighing their potential advantages.

Regulation was an issue with almost 60% of respondents, many of them indicating that clear regulations and proper licensing laws were needed for cryptocurrency exchanges. Some suggested that examples such as Japan and Singapore were models worthy of Hong Kong regulators worth considering.

Of the 46% suggesting that hardship may be around the corner due to an economic downturn, some would consider investing in cryptocurrency. A quarter of all those surveyed suggested they would invest but only in times of economic hardship but currently have no need.

In other news from the country, the Hong Kong Monetary Authority (HKMA), the region’s currency board and central bank, is launching a live blockchain-based trading platform in September, backed by HSBC, Bank of China, ANZ, DBS Bank, Bank of East Asia, and the Hang Seng Bank. Howard Lee, HKMA’s deputy chief executive, has suggested that it will be the largest multi-bank blockchain project of its kind in Hong Kong.

The Forbes 30 under 30 Asia list was released earlier this year with many of the drivers in the financial world located in Asia. The list showcased a new generation of talent from venture capital to the latest disruptive digital technologies. Many of this year’s nominees had embraced cryptocurrency ventures.

Two on this year’s list are Ryan Zhou, 23, and Myunghun Cha, 28. Zhou founded Australian personal finance platform Coinjar, simplifying the trading of Bitcoin which now has a turnover of USD 758 million with 350,000 members.

South Korean Cha founded Coinone, now one of the country’s largest exchanges trading around USD 10 billion a month and earning over USD 70 billion in 2017.

 

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