A new stablecoin launches on the Stellar’s blockchain, which is designed to hold its value with the Australian dollar or AUD and is being pitched for the consumer, as well as business uses.
Novatti Group issues the Novatti AUD utility token
As announced on the 23rd of October at the Money 20/20 conference in Las Vegas, Novatti Group, which is an Australian online payment processor, it is going to issue the Novatti AUD Utility Token starting on the 19th of November. The token is going to be backed 1-for-1 with AUD held in trust.
While traditionally, stablecoins were a tool for crypto traders to move money quickly between exchanges, Novatti envisions its new token being used for more common use cases, such as remittances of purchases.
The managing director of Novatti group, named Peter Cook, said that they think people are going to use the stablecoins to help purchase goods from Australian enterprises. And, they also believe that they are going to use them for the payment of bills or for services which are inside of Australia.
Novatti, which is a licensed payments distributor, processes payments for clients like Vox Telecom in Europe, as well as MoniSend, which is a remittance provider in South Africa. Peter Cook said that several institutions that are beyond the clientele of Novatti Group have reached out to express interest in the upcoming token because using it actually requires a compliant known-your-customer identity check.
Novatti Group will work with licensed money service businesses, banks, and enterprises
Declining to name which banks at this stage, Cook said that they are going to work with licensed money service businesses, banks, as well as enterprises that want access to a digital asset. Novatti is a publicly listed company, and it is listed on the Australian stock exchange. So, that could actually give users a lot of trusts.
The news came as competition among stablecoins heats up, with a few new U.S. dollar-pegged tokens launching in 2018, including the USD//Coin or USDC of Circle, the TrueUSD or TUSD or TrustToken, Paxos Standard Dollar or PAX of Paxos, as well as the Gemini Dollar or GUSD of Winklevoss brothers.
All eyes were on this niche for the last week, as the well-known stablecoin Tether or USDT fell below $1 and many exchanges quickly listed alternatives. In recent times, Coinvase said that it is going to support the USDC, which is the first stablecoin of the exchange.
Indeed, Lisa Nestor, the director of partnerships at the Stellar Development Foundation said that Stellar already supports at least 10 stablecoins, which include USD Anchor, which is created by startup Stronghold with help from IBM.
Some believe stablecoins can offer faster and less expensive ways of sending remittances
Some requests continue to pour in for Stellar to support new fiat-pegged options, which are known in the Stellar Community as anchors, she said that there are network effects here. It took them almost a whole year to get their first two currency anchors on the network. But, then each time they add another one, it makes it easier to add one more.
However, the motivation to create such assets is also shifting. She thinks that there was tension in the crypto marketplace, and that also drove a lot of the earlier stablecoins. But, they will also see continued adoption and growth in the payments space.
Despite some of the recent fluctuations in prices, some actually believe that stablecoins can offer faster, as well as less expensive ways to send remittances.
For instance, in Venezuela, even sending money through the banks gets exchanges at a horrible rate, said Leon Markovitz, who is a Venezuelan-born stablecoin advocate. However, he quickly added that crypto startups cannot fix the economy of the country on their own.
The token of Novatti Group is going to be the first AUD-pegged crypto asset on Stellar, but it will not be the first on the market. In September, the Australian Exchange Bit Trade has announced that it was working with the employment platform Emparta to launch a stablecoin in 2019 so that employers can pay Emparta users with cryptocurrency.