Xfers has made an announcement recently, one regarding the release of its new stablecoin: The XSGD. This comes after the company had received an e-money issuance license by the Monetary Authority of Singapore, or AMS. This allows Xfers to mint an unlimited amount of stablecoin.
Digital Singapore Dollar In The Works
This e-money license allows Xfers to, in turn, mint an unlimited amount of XSGD, with the stipulation being that the same amount of fiat currency needs to be locked in bank accounts approved by the MAS. With this oversight and relationship dynamic, all XSGD tokens are promised to be backed fully by an equal amount of Singapore Dollars (SGD).
This stablecoin will also be compliant with all the rules posted within the PSN01 Notice, which was a response from the MAS to the Financial Action Task Force (FATF) guidelines published last year. These guidelines focused on virtual asset service providers.
Plans Of Stablecoin Diversification
The rules themselves are fully dedicated to stopping any attempts to finance terrorism, or launder money, further providing a framework for various custodial cryptocurrency operators, such as exchanges and wallets.
Aymeric Salley stands as the Head of StraitsX at Xfers, and gave a public statement about the matter. Salley highlighted the massive rise in stablecoin adoption throughout these past few years, but pointed out that 98% of the market is dominated by coins denominated in USD. Salley Stated that Xfers believes that the time is now for stablecoins based on other fiat currencies to emerge, such as the SGD.
The XSGD stablecoin itself is set to launch on both Zilliqa and Ethereum, and will be instantly available on both wallets and exchanges based within the StraitsX ecosystem. It should be noted that this ecosystem already holds big names, such as crypto.com and Ledger.
Should a user desire to track any redemption, issuance, or volume relating to this stablecoin, they can consult the official website for details.
A New Arms Race
The world at large is focusing more and more on the use of blockchain-based technologies, such as central bank digital currencies (CBDCs), as well as various stablecoins. It will only be a matter of time before this will become the new normal, as technologies continuously rise ever higher. This, in turn, has sparked a bit of a cold war between the US and China, one that China is leading right now, much to the anger of Chris Larsen, the co-founder of Ripple.