• Compiled by Eddie Dovner

New York State Approves Two Dollar-Based Cryptocurrencies

By Swapna Krishna w/Final Thoughts by Edward Dovner

September 10, 2018 • Compiled by Eddie "Ed" Dovner

Today, New York approved the first digital currencies that are tied to the US dollar, called "stablecoins." These cryptocurrencies avoid the price volatility of their brethren by being pegged to stable assets. The digital currencies in question, from Gemini Trust Company and Paxos Trust Company, are available to trade on their respective exchanges. It's a good sign that cryptocurrency is maturing.

The Winklevoss twins, who rose to fame with a lawsuit suing Mark Zuckerberg for stealing the idea for Facebook from them, have become major players in the cryptocurrency world. They are behind Gemini Trust Company. The currency is pegged to the US dollar on a one-to-one basis; the company will hold US currency that corresponds with all issued Gemini dollars at a bank eligible for the FDIC's pass through insurance.

The value of a cryptocurrency that is pegged to the dollar value is that regular, fiat currencies only operate during certain pre-set business hours. A stablecoin opens up fiat currency trading to all hours, regardless of when the currency is actually available for exchange. "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," Cameron Winklevoss said in a blog post (emphasis in original). He goes on to call the Gemini dollar "the world's first regulated stablecoin."

Edward Dovner: "Stabilizing the cryptocurrency arena can only help to draw additional institutions and users which in turn expands the value and disparate uses of the currency itself." Learn more about Ed Dovner's thoughts and background...

Compiled by Edward Dovner • 2018 AboutEdwardDovner.com

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© 2018 Compiled by EDWARD DOVNER.

Edward Dovner is a serial entrepreneur who has proven himself to be successful. From Northeast Gourmet Coffee to portable fitness to cryptocurrency, Eddie Dovner has over 30 years of experience in finance and business. Now Edward shares the best digital currency news on the internet with YOU!