- The Yuga stablecoin will be globally backed by the treasury instruments of the respective country.
- It will also incorporate regulatory approved identity verification standards.
So far there has been lots of stablecoins linked to fiat or less volatile assets like gold! For the very first time, we will have a stable coin in the market backed bygovernment debts such as treasury yields and bonds.
Two co-founders of Puerto Rico-based Digital FV Bank said they were granted the US patent for the issuance of stable coins backed by public debt. The patent application filed with the USPTO last year describes stablecoin as a "symbolic crypto asset backed by sovereign debt ".
The patent names Nitin Agrawal and Miles Paschini as the inventors of the stablecoin nicknamed Yuga coin. Speaking to another post about this development on Tuesday, July 20, Agrawal said:
Users will be able to exchange the Yuga coin at a ratio of 1: 1 against any corresponding national currency. . In addition, each of these Yuga coins will be backed by instruments from the national treasury of the respective country.
At the start, the denomination of the Yuga coin will be in either US dollars or Euros. The negotiation of these partsStables will take place in a controlled network, which will also reduce the risk of trading with particular counterparties.
The developers of Yuga Coin strongly believe that it is more stable than other fiat-anchored alternatives currently. in force. the market. They argue that the Yuga coin will not depend on a single bank entity providing the collateral. The patent reads: "The stability of tokenized crypto asset is more akin to the stability of public debt.
Yuga Coin - A Blue Ocean Market
Unlike the stable fiat-pegged marketplace which seems extremely crowded, Yuga Coin sets up a new blue ocean in space. The market for such a government debt-linked stablecoin is quite scarce at this point.
Agrawal adds that bank-backed stablecoins hold all funds in government securities without fractional reserves. But with the Yuga coin, they plan to eliminate compThe banks' hurdle completely.
The latest development comes just at a time when US regulators are poised to take tough action on stablecoins. U.S. lawmakers have raised security and privacy concerns related to the use of stablecoins in the nation's financial system. On Monday, US Treasury Secretary Janet Yellen raised a red flag calling for immediate regulation. Additionally, Federal Reserve Chairman Jerome Powell also expressed similar concerns.
Speaking of which, Agrawal said that Yuga Coin will incorporate identity verification standards approved by the regulations. In addition, it will also incorporate risk scores similar to the FICO credit scores available in traditional finance. The inventor has stated that a regulated and trusted entity will verify the Yuga coin.
Debt-backed staff blecoin hasura multiple applications. This includes government-to-business transactions, intergovernmental transfers, global B2B and B2C transactions, as well as a store of value.
"This is the only way to make stablecoins more friendly to government that drive innovation in banking, payments, finance, capital markets and asset registry using blockchain, ”Agarwal said. "Crypto is a solution to all the anti money laundering problems in the world and this project provides a way to achieve it.