Trend of stable coin – Is China emulating like USDT and LBX?

The prime intention and need behind cryptocurrency invention in 2008-09 was to create fidelity and anonymous method of mobilizing funds efficiently, ever since then it’s been presaged as ‘digital gold’. With an objective of fostering the anonymity, a Japanese had to invent something which was not existed, this was possible when Blockchain technology, the digital ledger of constant Bitcoin transactions, was developed. But, due to the rising scams in the crypto-industry in the recent past, the concept of Stable-coin has emerged and trend of such coins has been eye-catchy for now. Tether (USDT) was launched. A San-Francisco based crypto exchange, Kraken has responded to a recent article by Bloomberg that argues Tether (USDT) is being manipulated on their exchange. Kraken took a dig at the article’s complex headline and insinuated that the article was written to have an effect on the price of futures trading.

Elsewhere, London’s Canary Wharf, which is a cryptocurrency exchange platform, has announcedits idea of launching its own cryptocurrency linked to the pound sterling by the name of London Block Exchange (LBX). 

The President of China, Xi Jinping has begun with the blockchain technology in order to accelerate innovations through various applications and that it is estimated to be worth around $102 trillion USD. 

Chinese stable coin seems to be most likely as per a report that states a stable coin is inevitable in the country and that the PBoC would essentially upscale the existing circulation of fiat using it.

Amid global trade war scenarios, the token would be expected to compete internationally with its counterpart USDT (Tether USD) and even Bitcoin.

It is universally known fact as to how the Chinese government is keen on stringent and centralized regulation, thus, an authority-driven stable coin that functions as per the centralized method could be a wise way, principally for the revenue collection of the government. 

A stable coin is any cryptocurrency which is pegged to a “stable asset”. A stable asset could be anything from gold, fiat currency or asset where the price can be ascertained and generally agreed upon. Designs new coins backed by the collateral attached. The greater the value of the collateral, the more coins issued to maintain the price. 

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