London Block Exchange Announces Plans to Launch a GBP Pegged Cryptocurrency
The London Block Exchange (LBX) is scheduled to be the first company developing and launching a stablecoin linked to the value of GBP. The coin is to be named the LBXPeg which will be tied to the value of the pound sterling by holding the equivalent ratio of 1:1 in a bank account.
LBX believes there is a need for stablecoins within the current cryptocurrency ecosystem, but greater trust is needed in these projects to induce more to buy crypto and trade. Tether is the largest stablecoin with a current market cap of over 2.8 billion USD. This coin is used mostly by traders to buy and sell cryptocurrency showing interest in stablecoins.
Though Tether is currently the most popular it is still not perfect. Tether supposedly holds a 1:1 ratio of US Dollars to Tether in a bank account but many do not believe or trust they hold this. When you buy crypto with Tether, whatever the value was is removed from Tether’s bank to keep the 1:1 ratio and ultimately $1.00 price.
Tether have been previously open to provide the results of their audit but never reached publication casting doubts on the transparency of the project. LBX will address these issues by offering transparent management structures, distribution schedules and holding the pound sterling in an auditable UK bank account.
LBXPeg hopes to make the transfer of money traceable and trustworthy with use cases to buy cryptocurrency. As the token will be Ethereum-based, it will provide transparency and efficiency with the upcoming release of new scaling solutions. LBXPeg is to be an ERC-621 token, built upon the current ERC-20 standard to allow the flexibility in the total supply to correspond with the GBP held in a segregated account.
LBX plans to initially release their token through their platform but plans to integrate the products value to accounts holding other fiat currencies. The platform will be able to display a value for accounts that hold Euros, USD, GBP and LBXPeg in a fiat currency.
The LBXPeg is scheduled to be the first GBP backed cryptocurrency and has received strong interest from regulators. As with Tether this may just be the start of GBP backed cryptocurrencies.
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