Last week’s Tether (USDT) action and its quick recovery showed that stablecoins are valuable to the Cryptocurrency ecosystem, but also more stable than people think. You can read more in the articles below. A new stablecoin pegged to a fiat currency will make its debut. The new stablecoin is launching on Stellar’s blockchain and it will be pegged to the Australian dollar (AUD) with business and consumer usecases. It was announced on 23rd of October that the Novatti AUD Utility Token will be issued from 19th of November.
The announcement came from the Money 20/20 conference in Las Vegas. The token issued by the Novatti Group, an Australian online payments processor, will be backed 1 for 1 with AUD. Backed up tokens will be held in a trust fund. Novatti aims for a different approach from other stablecoins. Stablecoins are often most used by traders. These traders aim to quickly transfer large sums of money between different exchanges. Novatti will aim to change that by aiming the tokens to be used for purchases and remittances.
The Novatti AUD Token can potentially be used for purchases
For the economy of Australia this can be very good news. If the new stablecoins shares even half of Tether’s popularity, a lot of people from around the world will be able to purchase many different goods from Australian businesses. Eventually, the Novatti stablecoins can be used by Australian citizens to pay for bills or additional Australian services.
As a licensed payments distributor, Novatti processes payments for many customers worldwide. Novatti’s customers include the European Vox Tlecon and the South African remittance provider MoniSend. Some of Novatti’s customers have already expressed interest in the new token. The interest is largely attributed to the use of the know-your-customer (KYC) ID check.
With Tether (USD) falling below $1, many exchanges quickly started searching for alternatives. This opened up a lot of room for competitor stablecoins. Circle’s USD//Coin (USDC) has held most of the interest. Coinbase stated last week that it fully supports USDC. With Tether’s volatility it’s natural that there’s tension in the crypto markets. As adoption increases, more and newer stablecoins will make their way into people’s everyday lives.
It’s important to note that the Novatti token is not the first AUD-pegged crypto asset out there. Earlier last month, the Australian exchange, Bit Trade shared the announcement of a co-op project with the employment platform Emparta. The project aims to release a stablecoin in 2019. This stablecoin will allow Emparta users to be paid by their respective employers with cryptocurrency.