John Liu, Chief Product Officer of Fusion Foundation, discusses the case for stablecoins in growing regions around the globe.
Facebook and JPM Coin Suggest Mainstream Potential for Stablecoins
Global projects like Facebook Libra and JPM Coin have captivated the world with the potential that stablecoins (cryptocurrencies pegged to assets with perceived relative stability like the USD, the Swiss Franc—even gold or silver) might move to the mainstream sooner than some have envisioned.
Planned for launch as early as 2020, Libra will be backed by a reserve of real-world assets, including bank deposits and short-term government securities, making it more stable than other cryptocurrencies, while giving it an instant platform. Although its fate remains uncertainconsideringFacebook’s regulatory and privacy probes, Libra was positioned from the start asa direct challenge to existing central banking systems: “a more efficient, low-cost and secure alternative payment tool for people who can’t afford to transfer money using traditional methods,” according to the company.
Also this year, J.P. Morgan announced it had become the first U.S. bank to create and successfully test a stablecoin, saying its JPM Coin has the potential to transform global banking payment transfer for its institutional clients, an alternative to less efficient legacy bank payment systems such as SWIFT.
To read the full article, click here.