Two players in the domestic crypto scene are collaborating trying to launch the first stable currency in Australia – a cryptocurrency supported by the Australian dollar.
The project is a joint initiative between Emparta, a blockchain work platform and the exchange of encrypted Bit Trade.
Proponents of stable currencies say they offer the positive aspects of cryptocurrency – such as faster transaction rates – without the underlying volatility.
The lack of volatility is due to the fact that stable currencies are anchored to the fiat currencies tradition, so they do not experience the wild price fluctuations often observed in cryptographic markets.
The most controversial and controversial stable currency has been launched by the Tether cryptography platform.
Tether's USDT is presumably anchored to the US dollar, but many are skeptical that Tether actually holds the US dollars needed to support its currency.
Emparta's chief official, James Hill, told Business Insider that the project's local stable currency differs from Tether because it will be fully repayable upon request.
As a blockchain platform based on employment, Emparta plans to use stable currency to facilitate payments by employers.
"An employer will pay the traditional fiat salaries in a nominated treasury account, which receives the money and reduces the stable currency.When the person receiving the payment wants to redeem the funds, the currency is" burned "and the money is returned in Australian dollars, "said Hill.
Hill said the new platform could allow employees to receive funds in a separate format – say, a 90% stable currency and 10% Bitcoin – and could then return the Bitcoin component to family members abroad  Emparta is working on a prototype that is "about five weeks away" from completion, Hill said. The stable currency is not scheduled for launch until 2019.
Clearly, a viable stable currency project would need the approval of regulators. And Hill said he had been in talks with the tax authorities and the corporate regulatory authority, ASIC.
"In discussions with ATO, I have to say that they have been good enough, they have been receptive and have seen some advantages over what we are proposing," said Hill.
He said the talks with ASIC were focused on fulfilling obligations with potential banking partners, who will provide the custody solution for a cryptocurrency supported by AUD.
Earlier this month, the US-based Gemini Exchange – run by the Winklevoss twins – announced plans for a stable currency backed by US dollar holdings held by State Street, the global banking giant.
So is one of the four big Australian banks going to collaborate and immerse their toes in cryptic waters?
"We have not yet signed an agreement with any of them, but I will say that there are many smaller banks outside the big four that have expressed interest in this space," said Hill.
The custody solution will be a key part of the use case, because the concept of a stable currency does not work unless it has enough liquid fiat currency to support it.
"Our stable currency is designed for cash redemption and has a collaterialized treasury with legal currency," said Emparta CEO Adam Sarris.
Emparta is managing most of the project but has brought the Bit Trade exchange as a partner on board.
The parties have said they have already received interest from other national stock exchanges that are eager to offer the currency.
"The volatility of the market in the space of digital money makes a stablecoin a very attractive haven for investors looking for stable returns and marks a new way to access digital currencies in Australia," said Chief Executive Officer of Bit Trade Jonathon Miller.
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