Stablecoins continue to capture the interest of investors, showing that there are more and more use cases for this type of tokens. As reported by Ethereum World News, TrustToken, the creator of TrueUSD announced the launch of tokens backed by the fiat currencies of Europe, Hong Kong, Australia and Canada, and a few hours ago, Wirex and Stellar took one step forward and announced the issuance of 26 new stablecoins.
The FCA-regulated payment platform explained that they had made that decision not so much to facilitate trading but to stimulate interpersonal remittances and p2p payments.
Stablecoins gained that name precisely because they are anchored to the value of a specific asset, generally 1:1 with respect to a monetary unit. While most stablecoins represent fiat money, there are tokens that represent the value of gold (digix), diamond (carat) and other materials.
For the launch of the new tokens, Wirex chose the Stellar blockchain. According to Forbes, Jed McCaleb, founder of Stellar expressed his enthusiasm for the partnership, explaining that this joint effort could be good for the parties involved
“Stablecoins have the potential to transform the payments space … We’re excited to be working with Wirex to launch its first stablecoins to help make money more fluid and open to everyone.”
For his part, Pavel Matveev, Wirex’s co-founder explained that the firm has the vision of expanding the supply of stablecoins available in the crypto-verse stressing that offering tokens backed by other currencies besides the dollar can stimulate not only the industry but the entire ecosystem as it would solve different economic, technological and legal problems:
Most stablecoins are pegged to USD. While these are suitable for a specific use case – hedging on cryptocurrency exchanges – they can’t be used for payments, as they’re not scalable and don’t support local currencies. Since payments (cross-border and daily) are Wirex’s main focus, we added support for local currencies with the aim of using stablecoins for international transfers. Local currency-pegged stablecoins don’t require a local liquidity provider, and can be easily and affordably exchanged to the equivalent local fiat currency.
Forbes explains that Wirex hopes to offer its products to over 2 million companies and five thousand corporate clients. This would give it a presence in more than 130 countries around the world.
They will offer the first products in the USA, Canada and the APAC region in Q2 2019.