Reports out today highlight that a new stablecoin has been introduced that will exist as a tether to the Taiwanese Dollar. As this will be a stablecoin, the idea is simply that the coin will follow the price of the Taiwanese Dollar and will offer a crypto alternative for the FIAT currency, in the same way Tether currently operates alongside the US Dollar.
The coin will be named the Taiwan Digital Token (TWDT) and is currently being built on the Ethereum blockchain as an ERC-20 token. The company behind this are a Fintech firm called Green World, who are alleged to have filed a patent for a process that will allow for dollar to token trading, but protect the token from fraud and other financial crimes like money laundering.
As it stands, it also seems that already a number of Taiwanese banks are interested in integrating the new stablecoin into their services, allowing some customers to tie the coin within their current store of Taiwanese Dollars.
Moreover, according to Bitcoin.com:
“The Green World plans to offer the tokens online and through terminals located in some retail stores. The company hopes that the NTD peg will increase confidence in TWDT among Taiwanese users who seem to be the main target group of the stablecoin.”
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This has implications for cryptocurrencies in Taiwan. Of course, stablecoins offer a crypto experience away from the problems that surround volatile markets. By using stablecoins, users have access to a crypto style of purchasing but without the confusion and risk of investment. Because the price of TWDT is generally fixed to the Taiwanese Dollar, this is not a token that will be invested in, instead, it will be used to simply compliment the Taiwanese Dollar, or of course, to be used to purchase other cryptocurrencies.