A consortium of blockchain companies such as Bittrex International, Brave, Cred and Bitgo is introducing a new stablecoin. The universal dollar (UPUSD) of the Universal Protocol Alliance is a dollar-marked token, whose holders will earn interest just as much as a regular savings account. The consortium has announced ambitious plans to launch UPUSD first in Africa and Latin America to "attract the next 100 million users to the cryptocurrency".
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Crypto assets that pay interest are so hot right now
The competition for the USD ticker is tough these days. In addition to the TUSD, GUSD and USDC, the stable coin economy now also has UPUSD. Universal Protocol's Protocol Against Stable Coin, developed with support from Bittrex International, Uphold, Brave, Cred, Blockchain at Berkeley, Bitgo, and Certik, is an ERC20 token that allows owners to be interested in staking. In this regard, there are clear parallels with Blockfi's Crypto Interest Rate Account, which was introduced this week and promises BTC and ETH holders 6 percent a year. Dan Schatt, president of Cred, told news.Bitcoin.com that UPUSD will pay quarterly interest rates of up to 10 percent annually.
What distinguishes the Universal Dollar from the competition is the target market for which it was designed. Countries weakened by weakened national currencies such as Venezuela and Zimbabwe are said to be among the first beneficiaries of UPUSD. The Universal Dollar Stablecoin promises a "competitive annual rate of return" and is expected to be particularly strong in countries with high inflation or limited access to traditional banks. Dan Schatt explained:
Today, Uphold and Cred serve hundreds of thousands of users in developing and hyperinflationary economies. Many Venezuelans use the service of cred and seek the same return and stability as the rest of the world. The difference is that they are in a country with an inflation of 10 million percent.
A passive income for token holders
The UP platform enables users to lend their USD-linked assets and earn interest through the Uphold Cred Earn application. UPUSD is also being introduced in developed markets, where users can store their digital assets 1: 1 at FDIC-insured banks. The token will be launched on March 8 at Uphold, whose UP platform has been praised by UPUSD supporter Brendan Eich, co-founder of Brave, for its "ease of use and familiarity".
The platform includes a number of features that enhance usability, especially for non-technical users who may not yet be familiar with crypto-currencies. This includes key recovery with a private 2-out-of-3 key sharing system that allows the wallet owner and one of his authorized third parties to recover a lost wallet. Users can also delegate control over their assets to a third party, such as a centralized temporary stock exchange, before taking back the custody of the funds and restoring them in their personal wallet. The development of UPUSD is the latest example of crypto-assets that take on the form and characteristics of the old financial system they originally left behind.
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The Stablecoin interest UPUSD, which was introduced under the Universal Protocol Alliance, was first published by Bitcoin News.