Next year, Australia will get its first stablecoin developed in partnership between a local exchange and a crypto employment platform.
The Emparta infrastructure empowers employers and job-seekers with instant onboarding and optional payments in cryptocurrency, allowing businesses to identify, select, and onboard employees. The company will combine with crypto exchange Bit Trade to release the coin according to an announcement made this week.
Bit Trade has announced that it wants to be the first one in Australia to use the virtual currency, suggesting that due to its value being backed by an underlying asset it will be less liable to volatility. Bit Trade’s managing director Jonathon Miller sees the stablecoin doing as its name suggests in a fluctuating crypto market. He commented:
“Stablecoins solve one of the principal issues that may drive investors seeking steady returns and merchants that currently accept traditional currency away from digital currencies: volatility.”
Miller sees such coins as going a long way to promoting further interest in the country’s already flourishing crypto market, given that the regulatory environment continues to move in the right direction. Currently, Australians are showing more interest in cryptocurrencies, with recent figures from HiveEX showing that those ‘hodling’ crypto assets have increased from 5% in January to 13.5% when the figures were reviewed in August of this year. Bit Trade’s chief added that this level of adoption could well continue with such introductions into the market:
“We believe that stablecoins will boost trust, accelerate wide-spread adoption, and could function as the backbone of blockchain-based financial applications, especially here in Australia given the favourable regulatory environment.”
In order to back the stablecoin with Australian dollars, the first treasury of the new stable coin would be held in Australia, the AUD-backed coin being redeemable on demand. Currently, there are other stablecoins available along with Tether, including the newly announced Gemini Dollar.
This stablecoin, launched by the Winklevoss twins, will allow users a one to one exchange on the US dollar on the Ethereum blockchain. They commented on the approval, suggesting that their thinking behind Gemini was a “first step… making it safe and easy to buy, sell, and store cryptocurrencies”.
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