An association of blockchain companies which include Brave, Cred, Bitgo, and Bitrex International is set to create a new stablecoin called Universal Protocol Alliance’s Universal Dollar (UPUSD) according to a recent report. The stablecoin is a dollar-pegged token of which its users will earn interest just like a regular savings account. The association intends to launch UPUSD firstly in Latin America and Africa in order to attract the next 100 million customers into virtual currency.
Universal Protocol Alliance’s Universal Dollar
Based on a recent report, there is a new member of the stablecoin economy even though the competition for the USD ticker is fierce presently. Universal Protocol Alliance’s Universal Dollar was created with the support of Cred, Bitrex International, Uphold, Blockchain at Bitgo, Brave, and Certik and it is ERC20 token which allows its users to earn interest for staking.
According to the president of Cred, Dan Schatt, similar to the Blockfi’s crypto interest account which was launched earlier in the week and promised BTC and ETH users 6% per year, UPUSD will pay quarterly interest as high as 10% every year. Stablecoins presently available are GUSD, USDC, and TUSD.
Speaking further, Schatt revealed that the only factor which makes Universal Dollar to stand out from the remaining is that it was created with a specific set of people in mind: countries which are handicapped by the wakened national currency such a Zimbabwe and Venezuela. These set of countries are going to be among the first set of people to benefit from the stablecoin as it promises a competitive annual rate of return which will be very useful for countries which are presently experiencing high inflation or have limited access to traditional banking.
He said:
“Today, Uphold and Cred service hundreds of thousands of users in developing and high-inflation countries. Many Venezuelans use Cred’s service, looking for the same returns and stability as the rest of the world. The difference is they are in a country with a 10 million percent inflation rate.”
