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Oct. 9, 2018

Stablecoins are quite rapidly growing in popularity, and it makes sense since there is something physical, a fiat currency that backs up the digital one. This time it is PwC, a London-based multinational services company, together with Cred, a blockchain lending platform, are to work together on developing stablecoin technology in order to bring more people and awareness to the crypto, in particular to stablecoins.

Stablecoins seem so tempting of late, even though all such present coins on the market have their flaws, the biggest of which, is not being able to account for their crypto with the required fiat currency. The most popular U.S. dollar-backed stablecoin tether infamous evasive audit is one such example of the problem that stablecoins have. To this moment there is no adequate solution, however, a number of companies such as the Winklevoss’ Gemini and the London Block Exchange have recently announced that they intend to launch clean and transparent fiat-backed cryptos.

The PwC U.S. Blockchain and Cryptocurrency Leader, Grainne McNamara, said:

“We are eager to leverage our proven industry experience to support a quickly developing asset class and its associated market infrastructure components. We believe this exploration of the blockchain infrastructure and associated operational frameworks can help the industry develop an increased level of comfort.”

Such a large player as PwC getting their feet wet in crypto could be a very strong reason for other investors to become interested, and later to join the crypto ecosystem, as Dan Schatt, president and co-founder of Cred pointed out:

“PwC’s commitment to the crypto community at large sends a very strong message to retail investors, mainstream financial services providers and the crypto enthusiasts that the world is moving toward decentralization, transparency and accountability in a system that will evolve beyond the need for trusted intermediaries. This will help the ecosystem evaluate key considerations as standards are enhanced relative to the creation and management of stablecoins and universal digital assets that support mass adoption of crypto assets.”

Despite the different difficulties stablecoins are experiencing at the moment, it is very understandable why they are very appealing at the same time. Like the dollar, before it disassociated itself from gold as a guarantee of its price, stablecoins provide digital assets a means of ensuring their value. Being backed up by fiat currency, which is safely stored in a trustworthy bank, gives stablecoins to bridge the two, at the moment, rather distant worlds of traditional finance and digital assets.

Binance announced at the recent Malta Delta Summit that they will be opening a stablecoin exchange in Malta, which is another important for the event in the stablecoin mainstream acceptance.

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