Australia’s domestic crypto exchange Bit Trade has partnered with blockchain employment platform Emparta to design and develop the country’s first Australian-dollar (AUD)-pegged collateralised stable currency.
Stable currencies are cryptocurrencies pegged onto legal currencies. A basic prerequisite for stable currencies is that they have fiat currency reserves to redeem funds on demand.
The new stable currency will help accelerate real direct crypto payments along with Emparta’s blockchain employment structure, and Bit Trade’s market services. It is targeted to augment digital currency usage among Australian traders and investors.
Advocates of stable coins point out that they offer improved transaction speed while minimizing market volatility in the digital currency space. The lack of volatility takes place because stable coins are pegged to traditional fiat currencies, so that they can get away with the unpredictable price variations characteristic of the crypto markets.
Commenting on the partnership, Jonathan Miller, Managing Director and Co-founder of Bit Trade stated:
“We are excited to be partnering with Emparta and see enormous opportunities for the stablecoin in the Australian market… The stablecoin is a core part of the Emparta Employment Infrastructure, Identity and Payments platform. We look forward to being one of the very first users of the stablecoin.”
While Emparta CEO Adam Sarris added:
“The need for an Aussie dollar-backed and redeemable coin is essential for the broader market adoption of digital currency throughout Australia and the world… We see multiple uses for the stablecoin and our partnership with Bit Trade enables us to maximise its utilisation and work with some of the most talented and experienced blockchain experts in Australia.”
This new AUD backed redeemable stable coin is an integral part of the Emparta Employment Infrastructure, Identity and Payments platform. It assures to provide some promising benefits to employees and their employers, with minimal downsides. Emparta plans to use the stable coin to help facilitate wage payments in cryptocurrency. Emparta’s chief operating officer, James Hill explains:
“An employer will pay wages in traditional fiat into a nominated treasury account, which receives the money and mints the stable coin. When the person receiving the payment wants to redeem the funds, the coin is ‘burnt’ and money is sent back in Australian dollars.”
On the other hand, the new stable coin might also allow employees to receive the funds in a parts, for instance, 20% Bitcoin and 80% stable coin. It would also allow them to send the remuneration to their family or friends living abroad.
Emparta hopes to launch the stable currency not earlier than 2019.