In a recent announcement by Xfers, the company disclosed the release of its new stablecoin, which will be known as The XSGD. This move came after the Monetary Authority of Singapore, or the MAS, issued an e-money issuance license to the company. This gives Xfers the permission to mint as many stablecoins as they want. Hence, Xfers has decided to use this e-money license for minting an unlimited amount of its new stablecoin i.e. the XSGD. However, there is one stipulation that the same amount of fiat currency would also have to be locked in bank accounts that are approved by the MAS.
With this relationship dynamic and oversight, it means that every single XSGD token will be backed by an equal amount of Singapore Dollars (SGD). Apart from that, this new stablecoin would also be compliant with every single rule that’s posted in the PSN01 Notice. This notice is the response made by the Monetary Authority of Singapore to the guidelines that were published by the Financial Action Task Force (FATF) last year. These guidelines were mostly focused on rules relating to virtual service providers. As far as the rules themselves are concerned, they are fully aimed at putting an end to any possibility of laundering money or financing terrorism.
In fact, these rules provide a framework for a number of custodial cryptocurrency operators, such as wallets and exchanges. At Xfers, the Head of StraitsX, Aymeric Salley made a public statement about this situation. Salley pointed out the huge rise in stablecoin adoption in the last couple of years, but pointed out that nearly 98% of the market is dominated by stablecoins that are denominated in USD. According to Salley, Xfers believes that the time has come to introduce stablecoins that are based on other fiat currencies, not just the USD. The SGD is a good option to start with.
As far as the XSGD stablecoin is concerned, Xfers will be launching it on both Ethereum and Zilliqa. The stablecoin will be made immediately available on both exchanges and wallets that are based in the StraitsX ecosystem. It is worth noting that there are some big names already operating within this ecosystem, such as Ledger and crypto.com. If any user is interested in tracking any issuance, redemption or volume related to the XSGD stablecoin, they can visit the official website to get all the necessary details, as they have been provided there for everyone’s convenience.
The world as a whole has now shifted its focus more on blockchain-based, which includes central bank digital currencies (CBDCs) and different stablecoins. It will not be long before these currencies and stablecoins become the new normal, similar to how cryptocurrencies did. They had also dealt with a lot of opposition in the beginning, but the market has expanded beyond expectations and there is still a long way to go. Due to the coronavirus pandemic plaguing the world, a lot of countries are now considering introducing their own CBDCs, which could lead to a new era.