The Australian Dollar Will Be Getting Its First Stablecoin in 2019

Cryptocurrency exchange Bit Trade announces a new partnership with Emparta, a blockchain empowerment network, revealing plans to release a stablecoin counterpart to the Australian Dollar as early as next year.

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Cryptocurrency exchange Bit Trade announces a new partnership with Emparta, a blockchain empowerment network, revealing plans to release a stablecoin counterpart to the Australian Dollar as early as next year.

Stablecoin for the Australian dollar

Next year will see the Australian dollar (AUD) join the U.S. dollar and the Euro as a fiat currency which has a stablecoin replicate its value on the crypto market.

Bit Trade seems enthusiastic about launching the stablecoin, announcing that it aims to be one of the first to use this virtual currency.

Stablecoins are growing both in number and popularity. About two weeks ago, cryptocurrency exchange Gemini announced plans to launch its own stablecoin, the Gemini Dollar (GUSD).

AUD-backed stablecoin will bring market stability

Over the last couple of months, interest in cryptocurrencies in Australia has been on the rise. Managing Director of Bit Trade Jonathan Miller stated that the AUD backed virtual currency will bring stability to the crypto market.

Miller compared the stablecoin to conventional virtual currencies including Bitcoin and Ethereum, stating that the underlying asset behind the stablecoin would make it preferable to other cryptocurrencies. He stated:

“Stablecoins solve one of the principal issues that may drive investors seeking steady returns and merchants that currently accept traditional currency away from digital currencies: volatility.”

Would-be Austrailian investors who were held back by the highly volatile market of cryptocurrencies would be able to invest in stablecoins backed by their local fiat currency.

In their Medium announcement, the cryptocurrency exchange revealed that the first treasury of the AUD-backed coin would be located in Australia and that the company will be one of the first to use the stablecoin.

Stablecoins to bring massive adoption for cryptocurrencies

Mass adoption is seen as the holy grail of the current crypto market – companies are scrambling to bring simple and painless crypto trading to the average investor. It has been a thorny path, in part due to the very unstable nature of the industry and the inability of regulatory bodies to classify the asset type.

Miller believes that the growth of stablecoins which are adequately backed by regulatory approvals would be fundamental to the growth and adoption of cryptocurrencies.

“We believe that stablecoins will boost trust, accelerate wide-spread adoption, and could function as the backbone of blockchain-based financial applications, especially here in Australia given the favorable regulatory environment”

Cryptocurrencies already enjoy a positive regulatory framework in Australia, and Miller believes that this stablecoin will be the core for blockchain-growth and adoption in the country.

Miller has stated that the AUD-backed virtual currency will be different from the very popular stablecoin Tether (USDT). According to Miller, the AUD-backed coin will be fully redeemable upon demand.

In a Medium post, Bit Trade and Emparta announced they are currently working together on a prototype for the coin and estimate that a prototype would be completed by next month.

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