Co-founder of Bibox Aries Wang : Gemini dollar has three advantages than previous stable coins
On Sep 10th, Cameron Winklevoss and Tyler Winklevoss published the news that Gemini will launch the Gemini dollar(GUSD), a US dollar backed stable coin hosted on the Ethereum network.
On Sep 11th, the Winklevoss twins announced that Bibox will be the official exchange to list GUSD.
On Sep 14th, the cryptocurrency exchange Bibox listed Gemini Dollar(GUSD), and it's the very first exchange to officially list Gemini and launch GUSD market. The deposit and withdrawal of GUSD and GUSD market was open at 15:00 on 09/14/2018 (GMT+8).
The creation the GUSD leads to hot discussion about stable coin in the industry. For more insight information, CoinTime interviewed Bibox co-founder Aries Wang recently.
GUSD, the Gemini dollar, is a stable value coin (often called a“stablecoin”) that is issued by Gemini, a New York trust company, strictly pegged 1:1 to the U.S. dollar, and built on the Ethereum network according to the ERC20 standard for tokens.
Cameron Winklevoss said in the statement that,
“when fiat currency and cryptocurrency interact, the differences between the traditional banking system and cryptocurrencies become increasingly clear. While cryptocurrencies operate 24/7/365 (similar to email), fiat currencies only operate during specific 'business hours' (like snail mail) — a fundamental mismatch. As a next step in our mission, we must improve the linkage between these worlds by giving fiat currency the same desirable technological qualities of cryptocurrencies.”
He thinks that to date, there has been no trusted and regulated digital representation of the U.S. dollar that moves in an open, decentralized manner like cryptocurrencies, which leads to the birth of Gemini dollar.
Aries told CoinTime, after Gemini getting the license approved, Bibox and Gemini started to cooperate quickly. The cooperation was a two-way choice.
On one hand, Bibox is the world's top ten encrypted digital asset exchange which established in 2017. Featuring high security and smooth operations, Bibox has got a lot favor from investors. It's the first exchange to apply AI technology in the cryptocurrency field, which made tremendous breakthrough in project selection, security and user experience. Bibox also joined forces with Huobi, establishing a new exchange pattern which also being the first in the digital assets industry.
On the other hand, the GUSD is the highly regulated stable coin. It combines the creditworthiness and price stability of the U.S. dollar with blockchain technology and the oversight of U.S. regulators, namely, the New York State Department of Financial Services (NYDFS).
The mutual understanding and appreciation lead to the successful cooperation, according to Bibox team.
Why did Bibox choose to list the stable coin? The exchange explained that BTC and ETH are the two mainstream currencies with high volatility, which are not suitable for daily consumption and payment. Stable coin can avoid risk and broaden application scenarios, said Aries Wang.
Compared to the previous stable coins, GUSD has three advantages, according to Aries.
Firstly, Gemini sets up a trust company called Gemini Trust in New York, while Tether's sponsor Bitfinex is registered in Hong Kong. If the project wants to issue a stable ratio constantly pegged to fiat, and chooses not to be regulated in the United States, the starting point may be different. In addition, despite Bitfinex's fiat channel, it does not have money transfer licence like Gemini and Coinbase in most of American state.
Secondly, the U.S. onshore bank account responsible for keeping the Gemini dollar balance is subject to FDIC "pass-through" deposit insurance. This means that if something happens, users can get paid. This is also another difference with the Tether.
Thirdly, Gemini's brand image is clean and prestigious, and is accepted by regulators and financial institutions. By contrast, Tether has the problem of unlimited secondary offerings.
Talking about how will stable coin change the industry, Aries believes that the stable coin will gradually be accepted by large institutions and offer some hope for future application in the areas like instant settlement, cross-border transactions and the adoption of real blockchain functions.
Executive editor： Emily Sun