Star Xu, Founder of OKCoin and OKGroup, announced that OKCoin’s US branch will be launching a stablecoin, and a Chinese yuan-backed one at that. Furthermore, he assured that OKCoin USA will make sure that the stablecoin will be fully compliant with the state regulation, which, in this case, will be the US’.
Stablecoin Equals Electronic Cash?
The announcement was made through a series of Twitter posts on October 9, wherein Xu even went as far as to claim that stablecoins are, in essence, electronic cash. He also said that the launch of the said stablecoin is an “inevitable trend,” and that it improve the internationalization of the RMB by a significant margin.
Xu said in one of the Twitter posts:
Stablecoin are in essence electronic cash. They have the same attributes. The central bank issues the currency and then it is distributed peer-to-peer. The difference is it’s electronic. Today, the amount of cash in China’s domestic monetary system is not small.
Furthermore, he claimed that the USD-pegged stablecoin regulated by the US government will “strengthen the penetration” of the US dollar by as much as a hundredfold.
Expanding To More States
Consequently, OKCoin announced that its token-to-token trading has now been made available in more states in the US, including Arizona, California, Colorado, Idaho, Illinois, Indiana, Kansas, and 14 more. The service was already available beginning September, even though there were only fewer states which had access to the aforementioned offering.
“We aim to deliver the best trading experience to all the customers around the globe,” wrote OKCoin. “We will continue to expand our business and launch more innovative products to provide you the most secure and convenient trading services.”
It would seem that many more are jumping into the stablecoin arms race, including GMO Internet, which announced on October 9 that it will be starting “full-scale preparations” to launch another stablecoin which, in this case, is pegged to the Japanese yen.
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