Curve StableCoin is in the works despite the official examination
Curve StableCoin is in the works despite the official examination

- The CEO of Curve, Michael Egorov, said that the company is striving to introduce its own stablecoin
- oversured stable coins have reserves of cryptocurrency or other assets that exceed the number of stable coins output, which theoretically represents a buffer against price fluctuations
BörsenLiquidity Pool Curve wants to launch its first native stable coin and thus join a number of institutional market participants who, according to the recent, sudden and spectacular explosion of Terra's VAT stable, are competing for market share.
The managing director of the company, Michael Egorov, in a Virtual appearance Thursday said that the Stablecoin should be overwhelmed. Terrausd-whose implosion has raised the markets for digital assets to an extent to which many dealers have not yet completely recovered-sometimes under fire because it does not have enough security to maintain its one-to-one binding to the US dollar.
"This is all I can say at the moment," said Egorov without specifying a start date.
oversured stable coins have reserves of cryptocurrency or other assets that exceed the number of stable coins output, which theoretically represents a buffer for price fluctuations. It is a similar structure as on Bitcoin, in which the debtor usually has to raise much more of the cryptocurrency than is theoretically required to cover the credit line in question.
egorov did not respond to certain assets that are intended to serve as reserves for the new product. Stable coins are usually covered by the dollar, the euro or other liquid and common Fiat currencies. Other stable coins, including Tether, were subjected to a precise examination due to a lack of transparency and the view of investing stable coin money from customers in relatively illiquid assets.
The planned start takes place because the supervisory authorities worldwide-perhaps the most noteworthy, the US finance minister Janet Yellen, who has requested strict monitoring of stable coins similar to FDIC-insured banks-reinforce the processes for the StableCoin regulation after the collapse of Terrausd.
"Ust was secured by Luna, which ultimately depends on the success of VAT," said Egorov. "VAT of the death spiral has exposed that."
The international organization of the security authorities (IOSCO) and the committee for payments and market infrastructures of the bank for international payment compensation (CPMI) issued their final guidelines for the best stable coin practices at the beginning of this month.
"The latest market disorders were costly for many, but no system -related events," said Jon Cunliffe, chairman of the CPMI and deputy governor for financial stability at Bank of England, in A statement which is probably referring to the depet of VAT in May.
If a stablecoin serves as a mechanism to transfer monetary values - and is considered "system -relevant" for the financial markets - according to the BIZ, it must comply with a number of certain international standards that were introduced in the course of the global financial crisis.
Supervisory authorities in the USA say that they are particularly concerned when it comes to transparency and guidelines in relation to stable coin reserves. "If you only look at the events in April and May, the question was basically that everyone arises: 'What are these stable coins? Are you really stable?" What speaks for it, "said Wolfgang Bardorf, Senior Vice President and Group Treasurer from Checkout.com, during a recent block works webinar.
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The article Curve StableCoin is in the works, despite the official examination is not financial advice.