Tan the London based Aussie Bitcoin exchange CEO says, it's only lately that money and expertise has started to gravitate towards it, the idea of a stablecoin has been around for a while. The potential complexity is the attraction for starter-uppers.
Storing the equivalent amount of dollars and offering a tokenized version of that amount some stablecoin creators have taken the simple approach. Tan says, ‘These were things that about five years ago, usually only a central bank would have thought and now even the tech start-ups are looking at how can you hook a currency to a token and economics.’
People with foreign experience of 10, 20 years are trying their hands on it. That is because it's interesting, it's fascinating that it is attracting a lot of people from traditional financial spheres and also there's a lot of upside to it.
To some extent they've become an object of speculation and a store of value, like gold, the gyrating price of bitcoin and its rivals has meant that. To return cryptocurrency to a medium of exchange could be one attraction of stablecoin something one actually uses in a transaction.
The industry has reacted to the perception in several ways. The potential uses of stablecoins in CoinJar's business is being considered by Tan and he says that all exchanges are looking to digitize dollars at some point.
There are a few probably three or four Australian stablecoins already and many of them would be happy for us to utilize them while the question is how to try to leverage some of these things to provide a better user experience for the users?
It still seems surprising to see Tan choose Europe as a target for expansion rather than booming Asia or the silicon-friendly US, although London is a recognized hub for tech start-ups these days, particularly fintech. Regulation and culture as that of commerce turns to be the reason.
Coinjar’s co-founder Ryan Zhou is taking care of day to day running and its 400,000 customers. However, there’s a lot of use cases and whole lot of applications that could emerge from this.
Tan says changes such as the Britain's open banking regime or EU's general data protection regulation, can force companies to rethink their model as regulation can open up new avenues. Even amid the distractions of the London fintech scene, the principle is to remain focused.
Many companies are trying to make the most of this space or make big tech promises. It is indeed a long run game.
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