Friday, November 17, 2017

Is the dollar becoming de-centralized through a new cryptocurrency that allows for 1:1 exchange?

A blockchain based company called Coinfix has revealed a dollar denominated cryptocurrency that allows for both local settlement and cross-border payments using a 1:1 exchange rate between the crypto and the USD.

Known as the USC cryptocurrency, this project was forged in the attempt to aid millions of users in being able to use the dollar as a medium of exchange on the Blockchain and in a digitally encrypted form.

Recently, blockchain company Coinfix revealed its US dollar backed digital currency called USC, based on smart contract issuance. Unlike Bitcoin, Ethereum and other cryptocurrencies, it has a 1:1 exchange for the dollar. 
Coinfix is a project aimed at creating stable digital assets. It is based on the blockchain network of Achain, and is dedicated to helping global users solve the problem of convenient circulation of valuable assets. 
"USC and other stable digital currencies enable faster, easier and cheaper cross-border transfers," said Kevin Yu, founder and CEO of USC. Based on the distribution experience of USC, Coinfix will consider issuing more digital currencies with a 1:1 exchange for legal tenders. The vision of Coinfix is to achieve free and convenient circulation of assets. 
The problems of USDT and USC's strategic decentralization mechanism 
USC uses Hong Kong's Linked Exchange Rate System as a reference and uses legal tender-U.S. dollar as a reserve. USC is issued in strict accordance with the amount of USD held in reserve on the blockchain network of Achain. USC holders can convert back to US dollars for the same rate. When USC is redeemed, the recovered currency is destroyed to keep the 1:1 ratio with reserves. 
To ensure a digital currency has sufficient reserve, Kevin Yu, founder of USC, said that decentralization issuance mechanism is the key to ensure a currency is backed by accountability. USC is based on smart contract and it has three strategies to avoid the risk of over-issue. 
First, USC uses decentralized issuance mechanism through smart contract. The USC issuance center does not have the right to directly issue new USC and every USC is issued only after obtaining approval from more than 50% of USCexamining and approving clerks. 
Second, USC account application and audit are also being modified through blockchain voting, to maximize the transparency and decentralization of blockchain, to prevent any risks of mischief. 
Third, bank accounts of USC are audited by independent accounting firms. If it does not meet auditing standards, new USC cannot be issued. Accountability is thus bolstered by transparency. – PR Newswire

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