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Paxos Rebrands Token as ‘Pax Dollar’ Amid Stablecoin Wars

“Paxos gives its token a new name, Pax Dollar, as the company tries to challenge larger stablecoin rivals.

Paxos, a New York-based blockchain infrastructure firm, announced on Tuesday that it has changed the name of its stablecoin from “Paxos Standard’ to “Pax Dollar,” and that the token’s ticker symbol will become USDP.

The announcement comes as Paxos is fighting for attention amid a highly competitive stablecoin market that is dominated by Tether, a controversial overseas token popular with traders, and USDC, a U.S.-based stablecoin backed by Coinbase and Circle.

Stablecoins, as their name suggests, are digital tokens that lack the volatility of other cryptocurrencies. They are designed to maintain a 1-to-1 peg to a national currency like the dollar—though the mechanics of how that peg should work has been a topic of contentious debate in recent weeks.

Paxos has long touted what is now the Pax Dollar as the safest of stablecoins because the company has created reserves that consist entirely of U.S. dollars or short term Treasury bills. This is in contrast to the likes of Tether, which stores a large portion of its reserves in commercial paper and other assets.

Earlier this month, Paxos’s top lawyer claimed in a blog postthat Circle’s USDC was not a true stablecoin since, like Tether, a portion of it reserves were backed by assets like commercial paper and bonds. Circle initially blew off the criticism but, on Monday, announced that it was changing its policies so that USDC reserves would only consist of dollars and short-term Treasuries.

Backing a token only with dollar and dollar equivalents increases the integrity of a stablecoin. But it also comes at a business cost for the stablecoin issuers since it will earn less interest on the reserves it holds.

Stablecoins have also become a hot topic among regulators and central banks, including the Federal Reserve. In September, the Fed is expected to issue a major report on stablecoins that is likely to have repercussions across the industry.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Crypto News

Chilean Peso stablecoin goes live on Stellar Network

Photo by Alisha Lubben on Pexels.com

“Chilean Peso-pegged stablecoin CLPX launched on Stellar this week and is hoping to gain traction in the remittance and copper markets.

A new stablecoin pegged to the value of the Chilean Peso is now live on the open-source Stellar payments network — but is yet to prove popular with users. 

Chile-based firm CLPX Inc launched what it describes as the first-ever Chilean Peso-pegged stablecoin dubbed the “CLPX” token. 

According to the public ledger on Stellar Expert, since the launch on Monday, the stablecoin has seen limited volume of just $12,689 from a total of 12,902 trades. 

CLPX was designed to provide a cheaper alternative to traditional Peso-based remittances, with the firm utilizing the Stellar Network, as it incurs “substantially” lower fees than wire transfers or remittance services. 

“The new CLPX token is set to streamline remittances and make it easy for investors worldwide to use the copper-linked Chilean peso as a hedge,” an announcement read. 

CLPX also has an eye on offering international exposure to Chile’s booming copper market, which has been a critical driver of economic recovery amid the global pandemic. The Latin American nation is currently the world’s leading copper producer by a significant margin, with China being the main buyer of Chile’s red metals. 

While the project has talked up its strong ambitions, it is unclear how well the stage is set for it to perform. Apart from the low volume, CLPX Inc is owned by a relatively unknown firm named “KB Trading,” which has no listed partnerships on its website. 

While there has been a growing trend in Latin American and Spanish-speaking countries working toward crypto adoption following El Salvador’s Bitcoin Law, the regulatory landscape has been fairly quiet concerning Chile. 

In late May, Chile’s National Electricity Coordinator announced the Renova initiative, which will use blockchain technology to track and record the renewable energy usage behind the nation’s copper production. 

The Central Bank of Chile has been researching the topic of blockchain and central bank digital currencies (CBDC) since 2018 as part of its “Strategic Plan for 2018 to 2022.” CoinTelegraph