Tether to Launch GBPT in July, Pegged to British Pound Sterling

Stablecoin issuer Tether Operations Limited (“Tether”) has announced plans to launch Tether tokens (“GBP₮”) pegged to the British Pound Sterling in early July.

Webp.net-resizeimage - 2022-06-23T111833.958.jpg

“GBP₮ will join four other fiat-currency pegged tokens Tether has in the market: the US dollar-pegged USD₮, the Euro-pegged EUR₮, the offshore Chinese Yuan-pegged CNH₮, as well as the recently launched MXN₮, the Mexican Peso-pegged stablecoin,” Tether said in a blog.

The pound-pegged coin is called GBP₮ (GBPT), and will initially live on the Ethereum (ETH) blockchain, Tether’s announcement said. 

Tether operates the blockchain-enabled platform tether.to that powers the largest stablecoin by market capitalization of over US$68 billion.

This move comes following The UK Treasury’s plan in April to make the country a global crypto hub. The UK government has also announced moves to make stablecoins recognized as a valid form of payment.

“The creation of GBP₮ will put British Pounds on the blockchain and provide a faster, less costly option for asset transfers.” Tether said.

According to Tether’s blog, GBP₮ will be a stable digital asset operating under tether.to and pegged 1:1 to the British Pound Sterling. The company further said that the team of developers assigned to build GBP₮ also built Tether USD₮.

“We believe that the United Kingdom is the next frontier for blockchain innovation and the wider implementation of cryptocurrency for financial markets. We hope to help lead this innovation by providing cryptocurrency users worldwide with access to a GBP-denominated stablecoin issued by the largest stablecoin issuer,” said Paolo Ardoino, CTO of Tether.

In May of this year, Tether entered Latin America with the launch of the Mexican Pesos-backed MXN₮ stablecoin, Blockchain.News reported.

According to the company, the new stablecoin will be pegged to the Mexican Pesos on a 1:1 ratio and supported on three networks, including the Ethereum, Tron, and Polygon protocols.

The report added that Tether hopes that with the launch of the new token, the bulk of the cross-border transactions or remittances to Mexico can be taken on-chain, thus cutting transfer speed and fees.

“Introducing a Peso-pegged stablecoin will provide a store of value for those in the emerging markets and, in particular, Mexico. MXN₮ can minimize volatility for those looking to convert their assets and investments from fiat to digital currencies. Tether customers in this entirely new market will be able to benefit from the same transparent customer experience,” Paolo Ardoino, CTO of Tether, said.

According to data from CoinMarketCap, Tether is the world’s largest stablecoin with a market capitalization of $73.2 billion, ranking it as the third-largest digital asset.

Image source: Shutterstock

Source

Tagged : / / / /

British Lawmakers Concern Risks over Use of Digital Pound

As talks about the release of a digital pound by 2025 are yet to happen, British members of parliament (MP) are already doubtful that their use could harm financial stability, raise the cost of credit and erode privacy.

Webp.net-resizeimage - 2022-01-13T115153.084.jpg

In order to fight private sectors from gaining total domination over digital payments and the fall of cash use accelerated in some cases due to the COVID-19 pandemic, central banks around the world have begun to focus on CBDCs.

CBDCs are a virtual form of fiat currency. A CBDC is an electronic record or digital token of a country’s official currency, according to Investopedia. A meeting of Britain’s central bank and finance ministry to discuss whether to move forward on a possible central bank digital currency (CBDC) will be held this year.

However, according to the report by a committee in the UK’s House of Lords, daily use of an e-pound could see people transfer cash from commercial banks accounts to digital wallets which could potentially spark financial instability in times of economic stress and increase borrowing costs. Also, the use of a digital pound would allow the central banks to monitor spending which could harm privacy, the report added.

“We were really concerned by a number of the risks that are posed by the introduction of a CBDC,” Economic Affairs Committee Chair Michael Forsyth said.

Forsyth also added that regulation could be a better tool to fight the threat of crypto issued by Big Tech firms, instead of introducing a digital pound that carries numerous risks.

However, on a potentially positive note, the report stated that securities trading and settlement could become more efficient with a wholesale use of CDBC to transfer large sums.

Britain’s central bank and finance ministry should consult on its advantages over the expansion of the existing settlements system, it said. Although talks are yet to happen, ultimately Britain’s parliament has the final say on any decision to launch an e-pound.

Global scenario

Speaking of the development of CBDC, the Bahamas became the first country to launch CBDC since 2020, called Sand dollar.

In Africa, Tanzania is planning to follow in the footsteps of Nigeria who became the African country to release their own version of CBDC called eNaira in 2021.

While many central banks across the world are studying digital versions of their currencies, China has been at the forefront of CBDC moves.

According to a January 5, 2022, report by Blockchain.News, the People’s Bank of China (PBoC) extended its pilot tests for the country’s Central Bank Digital Currency (CBDC) or digital Yuan to launch a new mobile wallet.

China’s efforts with respect to developing a CBDC have been well commended in the past years. The PBoC launched trials for the Digital Yuan back in 2020 and has conducted a number of transactions to showcase the efficacy of the CBDC in retail transactions, the report added.

On January 7, 2022, China’s WeChat – the world’s largest chat app – became compatible with payments using the digital yuan ahead of the Beijing Winter Olympics, owner Tencent Holdings said, according to Blockchain.News.

In Central America, Mexico is planning on publicly distributing the Digital Peso by 2024.

Banco de México, the Central Bank of Mexico, has revealed that its projected Central Bank Digital Currency (CBDC), dubbed the Digital Peso, will be up for public distribution by 2024, Blockchain.News reported.

In Africa, the Bank of Tanzania is exploring ways to introduce a CBDC on its monetary system to enhance the domestic payment system, according to Bloomberg.

“To ensure that our country is not left behind by the adoption of central bank digital currencies, the Bank of Tanzania has already begun preparations to have its own CBDC,” Bank of Tanzania Governor Florens Luoga said.

Image source: Shutterstock

Source

Tagged : / / / / /

The trade of the century is still available. The next few hedge fund managers who take 100mil or greater Bitcoin position, will become the best investors of their generation. Similar to George Soros when he broke the pound. Bitcoin has 30x from here; that’s 100mil into 3 billion

The trade of the century is still available. The next few hedge fund managers who take 100mil or greater #Bitcoin position, will become the best investors of their generation. Similar to George Soros when he broke the pound. Bitcoin has 30x from here; that’s 100mil into 3 billion

Source

Tagged : / / / / / / / /
Bitcoin (BTC) $ 43,898.76 0.54%
Ethereum (ETH) $ 2,367.92 3.78%
Litecoin (LTC) $ 76.39 4.41%
Bitcoin Cash (BCH) $ 249.19 1.66%