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Exciting news today as the Winklevoss twins launch Gemini Dollar, a regulated stablecoin that lets users send and receive U.S. dollars on the Ethereum network. To date, there has not been a trusted and regulated digital representation of the U.S. dollar that functions in a decentralized manner the way crypto’s do. Until now that is — Gemini Dollar, we’ll call it GUSD, is presented as a stable value coin, or stablecoin as we know it. According to Cameron Winklevoss, GUSD has three main ingredients. It’s (1) issued by Gemini, a New York trust company, (2) it’s strictly pegged 1:1 to the USD, and (3) it’s built on the Ethereum network following the ERC20 standard for tokens. GUSD has already received approval from the NYDFS and is live for use.
“Building a viable stablecoin is as much of a trust problem as it is a computer science one. The Gemini dollar is the first stablecoin in the world that has solved for both. That’s the innovation here.” – Tyler Winklevoss
As of today, users will be able to convert USD into GUSD through Gemini’s exchange. The GUSD can be withdrawn to an ETH address. Users can also convert GUSD into USD by depositing them into a Gemini account. Cameron Winklevoss also mentioned that corresponding USD will be held at a U.S bank and eligible for FDIC “pass-through” deposit insurance. USD deposit balances will be audited monthly by an accounting firm in order to verify the 1:1 ratio as well, something that Tether faced scrutiny over in the past.
“The smart contracts underlying the Gemini dollar token have been fully audited and formally verified by an independent security firm, whose report is public available” – Cameron Winklevoss
It seems as though the future of money is certainly digital. And stablecoins play a major role in the adoption of said digital currencies.
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