Stablecoins aren’t serious unless they’re issued by an old bank. While waiting for the digital euro, we are entitled to a stablecoin backed by the euro. The latter would be better than traditional stablecoins like Tether (USDT) or USD Coin (USDC). The difference would not be technical but, marketing – it would all be a matter of image.
Better than the digital euro?
In a press release dated December 9, 2020, the Bankhaus von der Heydt (BVDH) announced the issuance of a stablecoin EURB guaranteed by theEuro at a ratio of 1: 1, on the blockchain Stellar (XLM). It is the first stablecoin of its kind issued by a financial institution.
The BVDH works with the digital asset tokenization and custody service provider, Bitbond.
The founder of Bitbond, Radoslav Albrecht, indicated that banks and institutional investors were uncomfortable using stablecoins like the Tether or theUSD Coin due to counterparty risks, however, that was not the case for stablecoins issued by banks.
The BVDH has received approval from the German regulator, the BAFIN, to issue tokenized bonds.
Finance, Confidence: Does It Make Sense?
The business development manager of BVDH, Lukas Weniger, said the main disadvantage of stablecoins is the lack of backing from an approved bank. For him, the problem lies in the question of user confidence.
The companies behind the Tether or theUSDC for example, are not required to publish audit reports or annual activity reports.
The CEO of BVDH, Philipp doppelhammer, mentioned the ease of issuing assets on the network to explain that the choice of Bitbond and Stellar.
Customers who wish to acquire the stablecoin make a currency transfer to an escrow account with the BVDH, the operation triggers the issuance of theEURB.
The BVDH, founded in 1754, is one of the first banks to have developed a range of services around the blockchain.
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