Green World To Create Taiwanese Dollar Backed Stablecoin
A Taiwanese technology company, Green World Fintech Service announced that it will be introducing a new Stablecoin that will be pegged to the Taiwanese Dollar. This currency will be created using the Ethereum network and will be named the Taiwan Digital Token (TWDT).
The value of the TWDT will be calculated using the NTD market. By associating this digital currency with an existing fiat, the Green World believes that it will be less volatile than Bitcoin, Ethereum and other cryptocurrencies in the market.
This will work similarly to Tether, the famous stablecoin that is pegged to the US Dollar. However, TWDT will be traded according to the standardized digital rule known as ERC20 which stands for Ethereum Request for Comments and 20 is a proposal ID number. This points to the existence of a standard protocol for trading in digital currencies.
Stablecoins provide an easier way for people to invest in cryptocurrencies. The cryptocurrency market is highly volatile, and while fiat to crypto exchanges do exist, a large portion of the public is not aware of them. Since stablecoin is backed by the fiat, it removes the physical need of the cashing out of the fiat currency itself. Therefore stablecoins are considered to be less volatile than other cryptocurrencies.
Green World wants to protect this currency from criminal activities such as money laundering and fraud. Therefore, the reports state that Green World has patented a unique process for the tokenization of the Taiwanese Dollar. This will require the trust and collaboration of the leading financial institutions and banks in the country. There will be ‘trusted bank accounts’ created that will require the user of TWDT to verify their personal information before the transaction can take place. After verification of identity, users can transfer money to the account through bank transfer or through cash at a retail terminal. The press release by Green World stated the following.
The (user) registration process is then remitted to the trust account opened by Green Circle Technology in the bank through bank or super-business channels. After confirming the deposit of NTD, Green World will give the same amount of encrypted digital tokens (TWDT-ETH).
Green World believes that Taiwan is a market where the government is interested in developing the digital infrastructure and therefore is making the best use of the opportunities. Also, Green World is the owner of the EC pay network which is one of the three major electronic payment processors in the country. The development of TWDT that will possibly be compatible with this platform is probable.
However, according to reports, some people are skeptical about the illegitimate supply of tokens. Green World has assured these skeptics by saying that they plan on making the process as transparent as possible. They welcome third-party auditors to review and improve the TWDT system to ensure legitimacy.
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