The Global Stablecoin Association (GSA) will be created at the Blockchain Budapest conference, which will be held on November 8 and 9. The new organization plans to encourage cooperation between projects that issue stablecoins.
According to the announcement, participants in specialized crypto projects, government representatives and experts from the big four accounting firms will join the association. The GSA pursues the mission of enlightening crypto enthusiasts. But this is not the only goal that the association has set for itself.
According to the statement of the organization, its members will be actively involved in the regulation of the crypto sphere, and even create a lobbying body. The association will also help “to achieve mass adoption of cryptos in the real world economy”. GSA also plans to develop a mechanism for self-regulating the industry and a rating system.
Stablecoins are cryptocurrencies secured by other currencies (for example, U.S. dollar) or any other value, like gold. They are characterized by low volatility, the ability to use anywhere in the world, and the lack of communication with the central banks of any country.
For some potential participants of the crypto market one of the main obstacles to use cryptocurrencies is their volatility. Stablecoins are designed to solve this problem. However, not everyone is coping with this task yet.
It should be noted that the idea of creating such an organization could have arisen due to the fact that the crypto community has really accumulated a lot of questions about the stablecoins. Most doubt has been caused by Tether, since recently the situation around the coin has been heating up. Although the USDT token has been received by the crypto enthusiasts with suspicion from the very beginning, and even the results of the audit could not convince them. Cryptocurrency is constantly blamed for the lack of transparency, incomplete security, and excessive centralization. Studies have also been repeatedly published confirming the link between the USDT issue and the manipulation of the quotes of other coins.
However, the stablecoins are still actively launched. Some projects are doing better than Tether. For example, Gemini Dollar (GUSD) launched by the bitcoin exchange Gemini is making progress. The rate of GUSD is setting records. A UK-based startup London Block Exchange (LBX) has announced plans to present a new stablecoin pegged to the British pound. And even the People's Bank of China called for the release of a stablecoin based on the yuan.
But despite these successes, problems remain. Stablecoins are often blamed for the lack of trust and low transparency. In this case, the tokens that solve this problem by maximizing openness are in turn accused of excessive centralization and regulation. Probably, the GSA wants to resolve this conflict and gather around representatives of various projects in order to discuss a way out of this ambiguous situation. In any case, the market needs stablecoins but the companies still have to work to improve them, and maybe gathering together will simplify the process.
By the way, this is not the first initiative in this direction. Recently, one of the world's largest consulting firms, PricewaterhouseCoopers (PwC), announced that it will develop new standards for an ecosystem of digital assets and stablecoins in cooperation with the Cred credit platform.
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