Universal Protocol Alliance Announces the Launch of A Dollar-Backed Stablecoin
The Universal Protocol Alliance, whose membership comprises Uphold, Cred, Blockchain at Berkeley and FBG Capital, recently announced the launch of a USD-backed stable currency. The announcement was made yesterday at San Francisco Blockchain Week.
The stablecoin dubbed “Universal Dollar” or UPUSD will be collateralized 1-to-1 with USD. It will facilitate access to benefits such as higher yields on deposits and flexible loans, according to sources privy to the matter.
Brave is also part of the Universal Protocol Alliance, and has been present in the cryptocurrency space for some time. The company uses the Basic Attention Token (BAT) token in its platform and has established various partnerships, such as with Dow Jones Media Group
What Are They?
A stablecoin is a digital currency that is pegged to a stable asset like U.S. Dollar or gold. It is a global currency, though it’s not tied to any central bank. The idea is based on creating cryptocurrencies with less volatility, with stable prices, by merging the best of both financial worlds. An example of these is the Tether or USDT, which is backed 1-to-1 by US dollar. Simply put, stablecoins are units of account as well as stores of value
Recently many stable coin projects around the world have been started. Just this October 9 it was announced that GMO, a Japanese Internet services company, getting ready launch a Yen-pegged stablecoin. The stable currency will be called GMO Japanese Yen (GJY).
At the same time, the British exchange house London Block Exchange disclosed its plans to launch a sterling pound-backed stable currency, which will be called LBXPeg.
Despite these initiatives taken to control the volatility of cryptocurrencies through stablecoins, Barry Eichengreen, the former policy advisor of the International Monetary Fund (IMF) and also a professor of economics at the University of California at Berkeley, United States, said that stablecoins may not be the best solution for bitcoin volatility.
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