The Universal Euro stablecoin is being launched by the Universal Protocol Alliance (UPA), a group of Blockchain organisations, and is reported to offer payment of interest to holders of this new stablecoin.UPA is aiming to encourage 100 million people to use Digital Assets, while tackling one of the key potential challenges around Blockchain adoption – interoperability. In other words, ensuring different Blockchains are able to communicate with each other.
Tether, the largest stablecoin by value, which has a current market capitalisation of over $2.3 Billion, has announced that it is not entirely backed by US$, but also holds loans and other assets as collateral. The announcement arguably takes it a step closer to more traditional instrument.
Similarities between some digital currencies and traditional currencies appear to be growing as innovators take features from both types of currencies. Some will be disappointed that Tether is not actually backed 1:1 by US$.
So, is Tether that different from the banks it is trying to compete against?
