On September 10th, Gemini, a well-renowned digital currency exchange that provides its users with the ability to sell, buy and store digital assets, launched a U.S. dollar backed ‘stablecoin’ named the Gemini dollar which is regulated by the New York State Department of Financial Services (NYSDFS). The Gemini dollar presents itself as the digital representation of the U.S. dollar. In the crypto world, this move made by Gemini is being lauded by many experts and Linda Coin’s blockchain advisor David Gokhshtein is one of them.
Talking to BlockPublisher regarding the consequences of the stablecoin launched by the New York trust company Gemini on the crypto industry, David stated that:
Might not be a fan of them, but I think it’s a great move and I see it only being a positive move for the industry .
The major feature is that is being provided by the Gemini dollar is its stability. It solves one of the major problem that is faced by all the cryptocurrencies as of now, volatility. Volatility is one of the core reasons that hold investors back from entering the crypto market.The problem of volatility also reduces the acceptance that cryptocurrencies have in the eyes of the investors and the general public. Regarding the prospect of acceptance that will be shown by the general public after this move made by the New York trust company, David stated that:
I mean, the public’s opinion of the twins isn’t all that favorable, but if you look deeper into what they are trying to accomplish with this move, people might give it a chance. Now, obviously if Zuckerberg or Jeff B came out with this type of news, of course their would be more interest.
Having a 1:1 peg with the U.S. dollar makes Gemini dollar more stable and more desirable in the public eye. It bridges the gap that is present between the crypto and the fiat world. Users can easily convert their U.S. dollars into Gemini dollars through their Gemini account. Gemini dollars can then easily be converted back into U.S. dollars by the users with much ease through their corresponding accounts.
The Gemini dollar combines the creditworthiness and stability provided by the U.S. dollar with the prospects presented forward by the blockchain technology. It is an ERC20 standard token and employs ethereum network underneath. The entire workflow incorporates smart contracts that make the system more auditable.
Gemini dollar seems to be just the thing that the crypto market needs as of now to grow towards maturity. As suggested by David, It will most likely help improve the ‘not so good’ image that the cryptocurrencies have right now in the financial industry.