Cameron and Tyler Winklevoss, the famous Bitcoin millionaires and co-founders of the regulated exchange Gemini.comhave announced the release of Gemini Dollar: a crypto token that is strictly pegged to the US dollar. The new ticker will be GUSD.
The new “coin” will be fully regulated and audited, which currently makes it the most sound “bridge” between fiat currencies and cryptocurrencies. Here’s how the Winklevoss brothers describe the new product:
Enter the Gemini dollar — a stable value coin (often called a “stablecoin”) that is
(i) issued by Gemini, a New York trust company,
(ii) strictly pegged 1:1 to the U.S. dollar, and
(iii) built on the Ethereum network according to the ERC20 standard for tokens.
Why GUSD is a big deal
There has been a lot of concern over Tether – a cryptocurrency that is supposedly pegged to USD, but their parent company has never released an audit nor even disclosed what bank they are using. Tether is responsible for a lot of BTC/USD trading on exchanges like Bitfinex, Bittrex, Poloniex and others, and there are concerns that the coin is not pegged to anything and is only used to artificially change the price of Bitcoin.
The Gemini Dollar is clearly a lot more transparent than Tether and properly regulated.
GUSD criticism and disadvantages
Here’s a couple of concerns voiced over the future of GUSD:
- it will be used for just a little fraction of Bitcoin trading
- KYC will be absolutely rigorous and will require vetting of secondary market actors too.
BTC/GUSD exchange rate