A fintech startup in Taiwan has announced plans to launch a new crypto-currency “stablecoin” that will be pegged to the New Taiwan Dollar (or NTD).
Green World Fintech Services made the announcement last week, according to local media. A stablecoin is a digital currency that is pegged to a state-backed “fiat” currency, in this case the Taiwan dollar. It means it does not have any of the wild price fluctuations that regular crypto-currencies have, therefore should make a good base to trade from.
Currently, the largest stablecoin in the world is Tether, USDT, which is supposedly pegged to the US dollar. It has a 24-hour trade volume of $2.7 billion and has become a trade vehicle of choice for altcoins, over Bitcoin.
The new Taiwanese stablecoin, the Taiwan Digital Token (TWDT), will be based on the Ethereum network as an ERC20 token. Its value will be calculated on the NDT market at the time.
According to the report Green World has patented a ‘dollar-to-token’ process that they maintain will protect the TWDT from money laundering and fraud. Established Taiwanese banks will also be involved to cooperate with the project and assist with identity verification under Know Your Customer (KYC) regulations. Only “trusted bank accounts” will be permitted to use the new crypto-currency.
Following a successful launch, Green World aims to make the tokens available for purchase online and through retail store-based terminals. With TWDT being tethered to the local currency, it is expected that confidence in the coin should follow. The government is also keen to develop the infrastructure that it believes will help promote electronic payments on the island nation.
Green World is also the owner of the EC Pay network, one of the top three electronic payment processors in Taiwan. Creating a stablecoin that is already compatible with its existing e-payments system is the next logical step for the fintech startup.
According to the Taiwan News, some are skeptical that the new digital coin will surpass the supply of fiat within the country. However, Green World has maintained that it will ensure the system is kept fully transparent. Third-party auditors will be invited, says Green World, and welcomed to continuously monitor the TWDT ecosystem to ensure transparency is upheld and the market evolves naturally.
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