Institutions Eyeing Launch of New Stable Currency to Replace BUSD

02/18/2023 13:00 • AI & Tech Insights • 101 views

It is reported that some institutions have contacted and proposed to launch a new stable currency to replace BUSD. According to Patrick Hillmann, the chief strategic officer of Coin Security, due to the ban imposed by the US regulatory authority on the issuer of BUSD, Paxos, which is not allowed to issue more tokens, a number of private and public entities have expressed interest in carrying out a new stable currency cooperation plan with Coin Security, “especially entities in Europe and the Middle East”,

Forbes: The existing institutions have contacted with Qian An to launch a new stable currency to replace BUSD

Interpretation of the news:

The stability of cryptocurrencies has long been a concern for investors, and that’s where stable currencies come in. These are digital currencies that are pegged to a stable asset like the US dollar, making them less volatile than other cryptocurrencies. BUSD is one such stable currency that has become popular in recent years. However, according to recent reports, some institutions have contacted Coin Security to launch a new stable currency to replace BUSD.

The reason behind the proposed replacement is that US regulatory authorities have banned the issuer of BUSD, Paxos, from issuing more tokens. As a result, private and public entities in Europe and the Middle East have expressed interest in collaborating with Coin Security to launch a new stable currency.

The move towards launching a new stable currency highlights the growing importance of regulating cryptocurrencies. Governments are beginning to realize the impact that cryptocurrencies can have on their economies and are taking measures to regulate them. In this case, the US regulatory authority has taken a firm stance against Paxos, which has led to other institutions exploring alternative stable currencies.

Coin Security’s Chief Strategic Officer, Patrick Hillmann, has confirmed that they have received inquiries from several entities regarding the new stable currency plan. This underscores the fact that there is an increasing demand for stable currencies that can provide investors with the stability they need.

While the interest expressed by private and public entities in Europe and the Middle East in carrying out the new stable currency cooperation plan with Coin Security is speculative at this point, it does suggest that there is a need for an alternative stable currency in the market. If the plan does go through, it could potentially shake up the stable currency space and pose a challenge to BUSD’s dominance.

In conclusion, the proposed replacement of BUSD highlights the growing demand for stable currencies that can provide investors with the stability they need. Governments are taking measures to regulate cryptocurrencies, and this could lead to more stable currencies being launched in the future. The emergence of a new stable currency could pose a challenge to BUSD’s dominance, and it will be interesting to see how the situation plays out.

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Institutions Eyeing Launch of New Stable Currency to Replace BUSD

Forbes: The existing institutions have contacted with Qian An to launch a new stable currency to replace BUSD

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