“Another Week, Another Stablecoin Project”
If 2017 was marked by the cambrian explosion of ICOs, 2018 is turning into a wild year of Stablecoins. Less than a week after Winklevoss-backed Gemini launched its native ERC20 stablecoin, their exchange rivals, Goldman Sachs-backed Circle launched a new stablecoin (USDC) yesterday. USDC is a fiat-backed fully collateralized crypto token that is readily available on Circle Poloniex and Circle Trade.
With the dizzying volatility of cryptocurrencies hampering their utility, stablecoins are expected to drive crypto adoption worldwide. However, stablecoins have their own set of challenges that pose significant risks to their stability. We will soon be publishing a report on stable coins. Please click here
if you would might be interested in getting your hands on the report.
This is our fundamental beef with stablecoins, will paraphrase one of my favorite columnists, Matt Levine here -
“There are two points to make here. First, using a stablecoin in a crypto ecosystem allows you to get around some of the institutions, laws, social constructions, etc., of the dollar system. This can be totally innocent and efficient! Maybe your bank just isn’t set up to move money to a smart contract, and there is no fast sensible way to explain it and meet your bank’s know-your-customer rules, and the only way to make smart contracts work efficiently is by having all of the money that goes into them live on the blockchain. Or, alternatively, it can just be a direct dodge around the law: Maybe the smart contract is to buy illicit drugs or Iranian oil, and you’re doing it with stablecoins instead of dollars because otherwise the dollar system would stop you.
But the other point is that the dollar mechanism is very very very popular and standard. If your goal is mainstream adoption of blockchain payments or smart contracts, then you might spend some time trying to get those things to work with dollars in the normal way, so that people can enter into smart contracts with their credit cards or brokerage accounts rather than by first buying stablecoins. If your smart contract can pull baseball scores from ESPN, why can’t it pull dollars from Bank of America? That is a harder approach, probably, because the normal dollar system is encumbered by law and custom and legacy technology. But it’s the system that everyone natively uses, and if you are looking to go mainstream, it might be the place to be”
We will expand the bull case and more in our research report that will be out soon
Chinese internet giant Baidu released a blockchain white paper called ‘Super Chain’ network system. According to the white paper, Baidu’s ‘Super Chain’ is much more efficient than a traditional blockchain.
Super Chain nodes operate on multi-core parallel computing to maximize CPU utilization and improve throughput.
“Swiss Startup SEBA Raises 100 million Swiss francs for a Crypto Bank”
Even thought the original libertarian premise behind crypto was to ‘disrupt’ banks, it does seem like it will be a case of replicating traditional financial infrastructure on the blockchain, rather than reinventing a completely new designed-from-the-bottom-up financial infrastructure. Libertarians still may not approve!