Liechtenstein Bank is planning to launch a cryptocurrency which will be backed by Swiss Franc. This will ensure that the cryptocurrency will provide additional security to the holders as compared to any other normal cryptocurrency. The cryptocurrency will be known by the name of Union Bank payment coin.
Fiat backed cryptocurrency:
The Fiat cryptocurrency will actually be used in order to settle the international transactions. This will mean that cross-border payments will be done much more easily. Currently, for the cross-border payments, there are a few cryptocurrencies which can be used like stellar lumens as well as ripple. However, with the help of Fiat backed cryptocurrency, it will gain a lot of traction as well. Also, the conversion will be entirely transparent and efficient as well. This will ensure that many of the vendors will actually prefer this cryptocurrency as compared to any other. This is one of the main reasons why there is quite a bit of excitement about this Fiat backed cryptocurrency which will be launched. Moreover, as it will be backed by Fiat currency, it will be less volatile as well. Due to this very reason, it will become easier for the suppliers to transact using this cryptocurrency.
According to the Prime Minister of Liechtenstein, Adrian Hasler, the cryptocurrency developments in the country has a positive development. They will provide a robust foundation for the future solutions as well. This will, in turn, ensure that more and more cryptocurrency based initiatives are based out of the country. This will also ensure that there is proper renovation as well.
Also, this Fiat backed cryptocurrency will ensure that there is proper liquidity for companies operating out of the country. This will mean that they are able to conduct their operations more easily as well. When that is the case, it will become easier for them to conduct their business on a day-to-day basis as well.
A few days back we had seen a Private bank in Switzerland by the name of Maerki Baumann has recently announced that it will allow cryptocurrency deposits. This shows us that more banks are joining the cryptocurrency bandwagon, and the popularity of cryptocurrencies is increasing. With the increasing popularity of cryptocurrencies, they are becoming more mainstream. This will ensure that the cryptocurrency investors are able to fetch rich dividends by investing in these cryptocurrencies as well. Such a joint venture actually induces credibility into many of the cryptocurrencies which are being launched. This will also increase the acceptance of cryptocurrencies all over the world. This is positive news for most of the investors who are invested in cryptocurrencies currently.
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