Jared Tate Came Up with a New Concept of Decentralized Stablecoin
The mastermind and creator of the DigiByte project, Jared Tate confirmed that his team is now developing its own stable cryptocurrency, which will be called DigiDollars. He also said that it will be significantly different from all existing in the market. He wrote about this on his Twitter. “All these other stable coins are launched on very insecure centralized networks. Total junk.” – he wrote. He believes that all existing stablecoins are pretty centralized, so they can`t be fully considered cryptocurrencies. Companies that issue stable digital tokens have a great influence on the network, so they are more like digital banks than cryptocurrencies. Tate suggested to create stablecoins not the way most companies do, he believes that it is necessary to create a decentralized system where users themselves will provide tokens with their funds located on bank accounts tied to the wallet. Balance confirmation will take place in real-time through a smart contract and API tools. “There is no central party controlling anything. The proof of reserves literally becomes millions of people or more.” – wrote Tate. Advanced users commented that such a system would be controlled by banks, which could block the operation of the API at any time. Also, the questions on compliance with KYC and AML rules remain open in the proposed concept. Jared Tate called this criticism reasonable but stated that his idea is quite real. Recall earlier we wrote that Libra is officially banned in the EU.