The First Digital Group is propelling digital asset innovation forward with the launch of its new stablecoin
The fluctuating nature of decentralised currencies and data, it’s fair to say, has given plenty of us reason to doubt their potential. The British Government’s stance on cryptocurrencies seems to be as dynamic (and volatile), whilst Crypto founders and proponents seem to be crumbling under the pressure, one by one, of revolutionising capitalism… nobody said it was going to be easy! Just today, Binance, one of Crypto’s key players, has been blasted by the United States Securities and Exchange Commission for engaging in a, “web of deception”, and implementing “sham controls” so it could continue operating in the US. Now, a new player has its sights set on digital asset innovation – a bold plan to renovate Crypto’s reputation.
The entire sector stands at a crossroads; too much disruption, and it will never gain traction with the public.
As reported by PR Newswire, First Digital has announced a new stablecoin, the First Digital USD, or FDUSD. Issued by DD121 Limited under the brand name, First Digital Labs, it’s a coin planned to be financially backed on a 1:1 parity with the US Dollar (or an equivalent asset), held in accounts of regulated financial institutions in Asia. So, what’s a stablecoin? It’s simply a cryptocurrency that’s value is “pegged” to a reference asset – something that shares the same value, providing much-needed credence in the real world. Reference assets typically include fiat money, like the US Dollar, precious metals or even other cryptocurrencies.
First Digital is Asia’s leading qualified custodian and registered trust company, headquartered in Hong Kong. Their faith in the FDUSD speaks volumes and could signal new, globe-spanning enterprise unions.
Digital asset innovation
Financial institutions have baulked at the borderless nature of cryptocurrency, and this move to unite Eastern and Western assets could serve to harness the Pacific split to great effect. As per PR Newswire’s article, stablecoins also provide increased stability, a form of remittance should it fail, and a hedge against central bank policymakers who seek to influence their domestic currencies.
“FDUSD offers users a reliable digital currency aimed at reducing volatility in the cryptocurrency market, enhancing the efficiency of financial transactions by lowering transaction costs, and offering faster, more secure transactions.”
– First Digital Limited
First Digital’s efforts to close the gap and legitimise its offering come at a time when financial institutions are under almost as much scrutiny as Crypto contenders. The corporation’s commitment to transparency is key – they’re banking on it engendering trust that stretches across oceans, and they have vowed to work closely with local and overseas regulatory authorities to ensure full compliance with current and future applicable laws and regulations.
That could potentially be the rub because those laws and regulations are going to change a lot in the coming months.
Are you an early Crypto adopter? Is trust too much of an obstacle to overcome?
Image courtesy of the RDNE Stock project via Pexels.
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