A fintech firm has created a new digital currency tied to Taiwan dollar. Green World Fintech Services announced that the new 'Taiwan Digital Token,' a 'Stablecoin' based on the Ethereum block-chain network has been developed using the Ethereum network, and will be called the Taiwan Digital Token (TWDT).
The company says the value of the currency will be calculated according to the NTD market and traded according to the standardized digital rule set known as ERC20.
Green World has patented the dollar-to-token process that they assert will protect the TWDT from fraud and money laundering. They believe that the fiat-pegged currency will be inviting to businesses due to the zero exchange risk.
The project will involve the cooperation of some established banks in Taiwan, as the crypto accounts of users will be tied to “trusted bank accounts” as a means of verifying personal information.
Green World is the owner of the EC Pay network, one of the top three electronic payment processors in Taiwan, and according to their statement has over 70 percent market share. It says creating a digital currency that is compatible with its payment systems is the logical next step.
More Stablecoins Emerge
Tether (USDT), a fiat backed stablecoin, has played an essential part of the cryptomarkets in the past few years. However, the controversial project has been the subject of manipulation allegations. The tether report suggested that bitcoins 2017 rally can be attributed to market manipulation via USDT. There are also claims that they do not hold a full reserve of 1 USD to 1 USDT and are operating a fractional reserve system.
In light of these revelations many alternative stablecoins have emerged such as True USD and MakerDAO. Goldman-funded FinTech startup Circle Internet Financial (better known as "Circle") is set to launch its own stablecoin called "USDC". This new "stablecoin" is based on an open source fiat stablecoin framework developed and governed by the CENTRE project.