DUSD. Its application and functions
The transition to Smart Chain has already started and it’s a good time to start describing the features of the new network in detail.
The most burning question for many is how will the stablecoin will be implemented. In this article, we’ll reveal the features of a stablecoin in DSC, how it will be implemented, and its functions.
Stablecoin Theory
Stablecoins are cryptocurrencies backed by fiat currency or another valuable asset, this provides stability and protects against high volatility.
Decimal USD (DUSD)
In the Decimal smart chain, Stablecoin will be introduced as a means of payment linked to fiat currency. This will be possible and available in countries where cryptocurrency is officially allowed and accepted for commodity circulation.
The company has already obtained the necessary licences to launch Stablecoin, to be more precise:
- A digital payment token service. The license gives the right to use cryptocurrency for purchase/sale or to provide a platform for cryptocurrency exchange
- A merchant acquisition service. With this authorisation, a company can provide processing services, i.e. payment gateway and POS terminals. This means that users will be able to pay with partner companies that accept cryptocurrency payments.
- An e-money issuance service is a licence that allows a company to issue e-money for later use as a means of payment. Also, to register e-wallets and actions with them (deposits, withdrawals, transfers between wallets within the system).
In the future, Decimal LTE PTD will continue to obtain the necessary licenses to operate in the specific country and to cooperate openly with companies that are ready to supply our users with goods and services for Stablecoin. Funds (reserves) in the required currency will be established to secure the stablecoin.
The emergence of Stablecoin in the Decimal Smart Chain network will bring additional liquidity and activity. DUSD will be listed on DEX Decimal and other decentralised exchanges.
Decimal LTE PTD is registered in Singapore and at the moment, it is one of the most active countries in the adoption and use of cryptocurrency. In 2022, Singapore passed several regulatory bills, that facilitate the secure circulation of cryptocurrency. There are a total of 7 licenses within the country that crypto providers need to obtain:
- Account issuance service
- E-money issuance service
- Cross-border money transfer service
- Domestic money transfer service
- Merchant acquisition service
- DPT service
- Money-changing service
By the way, it is worth mentioning large platforms, which everyone is aware of, that are registered in Singapore. This fact shows the country as a reliable partner and base for developing their crypto business, you can see the results with your own eyes by Decimal!
During one of the AMA sessions, Nick Bogorad talked about what awaits us after the transition. We encourage you to watch the recording: https://youtu.be/b6Hc6exf3LM
We will continue to introduce you to all new and interesting features in new articles. Stay tuned for more updates!