Tether, a U.S dollar-pegged stablecoin, has for long dominated the stablecoins market. With the market seeing new stablecoins being launched, a leading U.K cryptocurrency exchange has announced plans to launch its own pound sterling-pegged stablecoin on the ethereum blockchain.
LBX (London Block Exchange) has its mind made up on the LBXPeg, which will be a stable coin “tied to the value of pound sterling held by the company in a segregated bank account,” noted Finance Magnates.
LBX argues that the existing stablecoins have unclear management, auditing, and distributions mechanism thereby necessitating the need for a more reliable stablecoin such as the upcoming LBXPeg. The coin will be hosted on the ethereum blockchain since the chain is “transparent, efficient, and close to reaping the benefits of its upcoming scaling solutions.”
Apart from the pound sterling, LBX is also considering pegging the LBXPeg to the dollar to enlarge its “scope and stability.”
Recently launched stablecoins include the Gemini Dollar, which belongs to Gemini cryptocurrency exchange owned by the Winklevoss twins. The twins promised that the Gemini dollar will have a 1:1 ratio with the dollar and the ratio “will be supervised monthly by an independent registered public accounting firm and all auditing reports made public,” as previously reported by Cryptoline news.
Another USD pegged coin is the Paxos Standard and which has been approved by the New York Department of Financial Services. Pound sterling-pegged stable coins include the EURS.
London Block Exchange has the regulatory green light from the Financial Conduct Authority, U.K’s financial watchdog. The exchange trades in bitcoin cash, ethereum, Omisego, STATUS, BAT, among others.
Stablecoins have received a warm welcome from people interested in virtual currencies but the volatility associated with cryptocurrencies scares them.
As LBX gets ready to launch its own pound sterling-pegged stablecoin, do you think stable value coins will eliminate the fear factor associated with pure virtual currencies?
Let us know your thoughts in the comments section below.