The Global Currency Organization (GCO), a project spearheaded by former employees of J.P. Morgan, Intel and TrustToken, will be issuing a new U.S. dollar-backed stablecoin, called the USD Digital (USDD).
The GCO organization announced that they will launch USDD, a new stablecoin backed by the U.S. dollar. The organization plans on making the stablecoin model accessible to a network of global partners and available to end-users that easily want to exchange crypto with fiat and vice versa.
The team of industry experts was motivated to establish the organization “to focus on bridging the gap between traditional and decentralized finance.” CEO of GCO, Joe Vellanikaran, stated:
“We are excited to introduce a stablecoin that is providing an institutional-grade digital currency to everyday traders. We set out to make the benefits of blockchain available to all, a vision that is bigger than any one company. We are thrilled to be releasing USDD and opening up the GCO network to institutional partners worldwide.”
“With USDD, we are taking the stability and security of a fully-backed stablecoin and opening it up to a global network of partners. This is the next evolution of the stablecoin industry.”
But while the crypto community might be excited to see a new stablecoin on the market, the same cannot be said about banks. Board member of the European Central Bank (ECB), Benoit Coeure, stated that stablecoins could be very risky for public policy priorities.
“Stablecoins are largely untested, especially on the scale required to run a global payment system. […] They give rise to a number of serious risks related to public policy priorities. The bar for regulatory approval will be high,”-explained Coeure.
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