Crypto and Payments Firm MobileCoin Launches Stablecoin -- 'Electronic Dollars' (coindesk.com) 29
Privacy-focused cryptocurrency and payments firm MobileCoin, in collaboration with stablecoin platform Reserve, has launched a stablecoin dubbed "Electronic Dollars" (eUSD). CoinDesk reports: According to MobileCoin, eUSD is backed by a basket of other stablecoins, namely, USD coin (USDC), Pax dollar (USDP) and trueUSD (TUSD). Each transaction is said to be encrypted using end-to-end zero-knowledge encryption. In other words, only the transacting parties can see their own transactional data, thanks to encryption that uses zero knowledge proofs (a way of proving something without revealing sensitive information). The stablecoin eUSD is built on the MobileCoin blockchain, which, according to MobileCoin, is optimized for mobile devices. Apparently, MobileCoin was originally designed for integration with encrypted mobile messaging app, Signal. Consequently, eUSD will inherit the features of MobileCoin's native cryptocurrency, MOB, although eUSD users will pay transaction fees (a flat $0.0026 per transaction) in eUSD and not MOB.
The eUSD relies on what seems to be a centralized governance structure where the MobileCoin Foundation acts as the primary governing body. The foundation elects "governors" who are authorized to mint and burn eUSD. The stablecoin's collateral is held in a popular Ethereum multisignature (multisig) wallet called Safe (formerly "Gnosis Safe"). New eUSD is only minted after governors confirm an equivalent amount of collateral has been transferred to the Safe wallet. "Anybody can inspect the contract holding this basket [of collateral], to see what the current balances are. It's a Gnosis safe, which is also one of the most highly regarded contracts on Ethereum for holding assets," Henry Holtzman, MobileCoin's chief innovation officer explained during an interview with CoinDesk.
Similarly, if a user redeems eUSD, the token is "verifiably burned" and governors release the corresponding collateral. Verifiable burning is when burned eUSD is sent to a "burn address" that renders it "visible" for transparency purposes, "but unspendable." However, everyday users won't typically engage in burning and minting. An individual seeking eUSD would simply purchase it on an exchange. Approved liquidity providers (LPs) would be the ones minting large amounts of eUSD. To our knowledge, no project has created a native stablecoin with privacy properties, which is a first-class citizen in the ecosystem, and which never requires the use of 'non-private' transaction technologies to use normally. In short, no one has yet actually created a private digital dollar," MobileCoin stated in the eUSD white paper.
Holtzman said that eUSD uses a "reserve-auditor" program that "connects to the Safe wallet via an application programming interface (API) and verifies that each newly minted eUSD has a corresponding amount of collateral in the wallet." Holtzman added: "We'll release it all open source. So if you want to run your own copy [of the reserve auditor], you can. You can examine it to make sure we really are backed exactly as we claim," Holtzman told CoinDesk.
The eUSD relies on what seems to be a centralized governance structure where the MobileCoin Foundation acts as the primary governing body. The foundation elects "governors" who are authorized to mint and burn eUSD. The stablecoin's collateral is held in a popular Ethereum multisignature (multisig) wallet called Safe (formerly "Gnosis Safe"). New eUSD is only minted after governors confirm an equivalent amount of collateral has been transferred to the Safe wallet. "Anybody can inspect the contract holding this basket [of collateral], to see what the current balances are. It's a Gnosis safe, which is also one of the most highly regarded contracts on Ethereum for holding assets," Henry Holtzman, MobileCoin's chief innovation officer explained during an interview with CoinDesk.
Similarly, if a user redeems eUSD, the token is "verifiably burned" and governors release the corresponding collateral. Verifiable burning is when burned eUSD is sent to a "burn address" that renders it "visible" for transparency purposes, "but unspendable." However, everyday users won't typically engage in burning and minting. An individual seeking eUSD would simply purchase it on an exchange. Approved liquidity providers (LPs) would be the ones minting large amounts of eUSD. To our knowledge, no project has created a native stablecoin with privacy properties, which is a first-class citizen in the ecosystem, and which never requires the use of 'non-private' transaction technologies to use normally. In short, no one has yet actually created a private digital dollar," MobileCoin stated in the eUSD white paper.
Holtzman said that eUSD uses a "reserve-auditor" program that "connects to the Safe wallet via an application programming interface (API) and verifies that each newly minted eUSD has a corresponding amount of collateral in the wallet." Holtzman added: "We'll release it all open source. So if you want to run your own copy [of the reserve auditor], you can. You can examine it to make sure we really are backed exactly as we claim," Holtzman told CoinDesk.
What the (Score:4, Insightful)
What the heck garbage did I just read?
Call me back in 2 years when we read the inevitable Slashdot post about how the price crashed and it wasn't actually stable, or the founders were convicted of securities fraud (or both).
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You're very optimistic.
You think it'll take 2 years?
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eUSD. A solution nobody wants for a problem nobody can identify.
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Puts on "Electronic Dollars" -- can't wait to see these guys at Wendy's soon
Re: What the (Score:1)
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2 years? What scammer has that much time these days, with the attention span of the crypto goldfishs? 2 months before harvesting the dupes would already be pushing it.
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Much buzzword. Great confidence.
Livin in the 80s (Score:2)
Mad props for such a cool 80s style name. Is it eDollars for short?
I'm gonna recycle an old Debbie Gibson cassette and store my wallet on a tape drive just to be hip and widdit. ROT13 is secure enough since MobileCoin will block withdrawals whenever it suits them anyway.
Ah yes, regulation without actual regulation (Score:2)
The eUSD relies on what seems to be a centralized governance structure where the MobileCoin Foundation acts as the primary governing body. The foundation elects “governors” who are authorized to mint and burn eUSD.
You know what I love about regulation? Regulation that doesn't even have to answer to Congress critters. Say what you will about the shit condition of Congress, at least I can toss my vote to their opponent, they might not win but at least I can do something. This. This is regulation by people that literally anyone involved will have no say in who stays and who goes. It's just basically a board of executors. Which I guess if you're rich and can buy enough eUSD, then yeah it'll feel like Democracy. Bu
Re: Ah yes, regulation without actual regulation (Score:1)
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It really is unfortunate. Those clowns are destroying any real hope for a digital currency
Well I think it's going to be difficult for any digital currency to be widely accepted without some first world nation's blessing. Which at that point. . . what really makes it any different than the current currency system?
All so some bonehead who can only get laid via date rape pills can have money to do so
Okay well that statement is a little left field there.
More like the the Fed than Congress (Score:2)
Say what you will about the shit condition of Congress, at least I can toss my vote to their opponent, they might not win but at least I can do something. This. This is regulation by people that literally anyone involved will have no say in who stays and who goes.
But the foundation's governors isn't akin to Congress; it's more akin to the Fed. And similarly, we the people don't get to vote on the Fed Board of Governors either.
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And similarly, we the people don't get to vote on the Fed Board of Governors either.
You don't get to vote DIRECTLY for a Supreme Court appointees either, though the process of appointment is identical to that of a Governor of the Fed.
Only difference being that Fed Governors have a limited term and are required to make an annual report to the Congress. Also, when they shit on the carpet it gets fixed a LOT faster.
And yet it really matters which President and which senators were voted in to appoint them. Almost like some kind of a government where people hire other people to represent them.
U
Now thats an idea! (Score:2)
Wait, they are not as easily transferred as real dollars? There is no advantage to using my bank?
Kind of stupid (Score:3)
Using other stablecoins as a peg makes eUSD redundant. Also using humans to determine if tokens are being moved to a wallet seems stupid as well. DAI already operates on the Ethereum blockchain and uses a smart contract quite successfully to carry out this function already. Ironically DAI has gotten to the point where it's mostly backed by USDC rather than ETH, which is a little disappointing to say the least.
In any case, Signal could have adopted DAI towards the same effect.
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Using other stablecoins as a peg makes eUSD redundant.
I bet this recursive construct has potential to create some recursive collapse in few months.
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Only if those stablecoins collapse. Which most of them haven't. Certainly not "the big ones" like USDT and USDC. Of course eUSD is using USDP and TUSD as well, so we'll see how that goes. But it looks like TUSD is well-collateralized.
To summarize all the comments (Score:1)
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Nah, this is more Statler and Waldorf, the Muppet Show is the crypto scam.
Stablecoin (Score:2)
I can think of few things more useless than a stablecoin pegged to the dollar. Just use cash.
Here's a whacky idea (Score:2)
Yet another stablecoin... yawn (Score:2)
We don't need another stablecoin run basically like a bank before 1929, where a "run" would collapse everything because all the stablecoins are either not 100% backed by dollars, and couldn't handle people cashing out completely on a large scale.
What we need instead is something that is similar to Monero, but run by some non-profit who is more interested in providing a means of exchange as opposed to rug-pulls, shell games, and otherwise burning anyone who decides to buy in. Something where every transacti
Built on a house of cards. (Score:2)
If I wanted to gamble there is a casino not far away, plus if I lose enough I get comps. If it is so stable why do you need more than one? It looks to anyone with a brain that they are all based on the US Dollar, why not just use that?
-Silly waste of time
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If it is so stable why do you need more than one?
If there was only one it might need some real assets to back it. With multiple ones, you can have them all backed by each other, and if you tangle it up enough then people might start believing they are solid assets like CDOs.