The New York Financial Services Authority has laid another important foundation for the recognition of cryptocurrencies. Although it may not have been the goal of the overseers, the importance of allowing two Stablecoins for the crypto industry should not be underestimated. Both currencies meet the high requirements.
Following negative headlines in the media for price slumps on the market, the first cryptocurrencies are finally back on track. That’s why many investors have decided to buy Bitcoin again. Also, 2 digital currencies can be traded on the two exchanges, Gemini and Paxos. They are coupled to the Dollar exchange rate. The two currencies are now certified to comply with legal regulations are the Coin Paxos Standard and the Stablecoin Gemini Dollar. Each coin is offered on the same named stock exchange.
Supervisory authority is open to new ideas
It is the first time that supervisors in the US financial hub of New York are releasing digital currencies (or so-called Stablecoins), taking into account a pairing with the Dollar. The result of the test was announced just in time for the start of the new trading week by Maria Vullo, head of the regulator.
How is the trade done with two Stablecoins?
The exchange ratio of the cryptocurrencies will be 1: 1 to the Dollar. According to the platform’s founders, the Gemini Dollar will enable users to make transfers around the world, day, and night. Registered customers of the crypto platform, ItBit, can also trade the Paxos Standard. So, users of this currency have two points of entry for trading. This should only be the entry. Both currencies should soon be available on other exchanges of the crypto world.
Technical background: Stablecoins are said to be less volatile by being tied to the Fiat money rate, which is often problematic for pricing services and goods.