In another proclaimed “first”, Swiss bank Dukascopy is revealing a new stablecoin called ‘Dukascash,’ barely four months after the official launch of its very own cryptocurrency, Dukascoin (DUK+). The forex firm has picked an ERC-20 standard on the Ethereum blockchain and claims that Dukascash is the first stable crypto currency coin issued for public use by a licensed and regulated Swiss bank.
The new stablecoin will tied to a basket of ‘tokens’ whose value will be, in turn, backed by three major fiat currencies, including Euro, US dollar and Swiss Franc. So it requires a lot of oversight to make sure that every time the Dukascopy mints a Dukascash, they buy and store the equivalent in fiat-linked tokens. Similarly, every time someone converts Dukascash into, say, USD, the crypto community can see a selling order on the equivalent in fiat currencies.
To ensure transparency, the bank publicizes the addresses of its tokens reserves.
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According to the bank, another important benefit of Dukascash is that these transactions would be overseen by the bank, a trusted financial institution. This may sound not very decentralized, but at least the traders would get their bank statements recognized and accepted by any kind of financial authority.
Based on Dukascopy’s statement, issuance of new tokens will be subject to a public testing phase and limited to “crypto industry professionals”, whereby the minimum size of a transaction is established at 1000 or more tokens.
Available only in English, the Dukascash website, www.dukascash.com, is dedicated to improving the visibility of Dukascopy’s latest crypto product through offering general information and up-to-date news. The website also publishes the first official release of the Dukascash White Paper, which is also available for scrutiny.