SINGAPORE, Sept 27 (Bernama-GLOBE NEWSWIRE) -- With increasingly volatile trade relations and growing uncertainty in the global economy, and a digital asset industry subject to tough new regulatory measures,
many economic thought leaders are calling for a more stable and resilient global currency to reduce the current over-reliance on the U.S Dollar.
The EXR Foundation’s recently announced stable-value digital asset, EXR, joins a shortlist of serious contenders that potentially fit this bill. It will be created alongside Bitcoin, Facebook’s Libra and also the Peoples’ Bank of China’s incoming stable asset for domestic use in China.
What will be the world’s first “global coin”?Since its announcement, Facebook’s proposed Libra coin, an ambitious bridge between traditional and digital asset industries, has been vilified by authorities and traditional institutions concerned with the social media giant’s data track record, the potential further weakening of the U.S. Dollar, and other competitors inspired by Libra.
After their
meeting with the U.S. Congress, it has become clear that Libra will face a very tough battle to win over regulatory bodies in the United States. Moreover, the digital currency chief of China’s central bank has said that Libra could
challenge China’s monetary sovereignty and legal currency and that the government is currently developing its
own stable asset in response. In fact, Facebook
admitted in recent months that it is possible that the “Zuck Buck” might not ever make it to market at all.
On the other hand, Bitcoin, as a “self-made” store of value and one of the first popularized digital assets, is still severely curtailed by fundamental problems that it will likely never overcome. Largely remaining unregulated and anonymous, with its short history tainted by illicit activities, Bitcoin raises many questions over its concentrated ownership distribution, vulnerability to price manipulation by a small pool of investors, limited scalability and intense price volatility. All this suggests that, as opposed to becoming a reputable global payments solution, Bitcoin may remain as a peripheral global asset class that is not likely to transcend its inherent limitations as merely a speculative investment tool.
It has been suggested that the People’s Bank of China’s rumored stable asset will be very different from existing digital assets and may simply represent digital cash to be used within China. Furthermore, any stable asset originating from China with designs on global deployment will likely also face significant backlash from the U.S. Government.
The EXR Foundation’s recently announced EXR digital asset appears to have taken the best lessons learned from Libra, Bitcoin and the history of the U.S. Dollar and Pound Sterling, to make for a strong contender to become a global stable currency.
The Reason for the Rise of EXR
For more than 150 years, the global economy has been ruled by two currencies: first the Pound Sterling, and next, the U.S. Dollar, whose hegemony after the World Wars has not been challenged since, thanks to the unchecked growing power of American banking dynasties.
Yet, there is
growing evidence that the
U.S Dollar’s influence is waning, due to increasing economic and political pressure and a pending trade war partly brought about by
5G telecommunications.
While there are currently over 70 active stable assets on the market, most are pegged in some capacity to the US Dollar. The EXR Foundation feels that it an opportune time to establish a stablecoin that is not entirely dependent on the U.S. Dollar to derive its value.
What problems are solved by EXR?
Any stablecoin with global aspirations will have to overcome significant hurdles. This includes gaining trust from all stakeholders through full regulatory compliance, a transparent governance model, sufficient backing against real assets, competent security against cyber-attacks and the ability to function as a dependable store of value. Other essential requirements include a strong degree of price stability and an open eco-system to attract increasing monetary and data inflow.
EXR aims to satisfy all the above requirements. By partnering with IBM and using their cutting-edge Hyperledger software, as well as being backed by some of the biggest and most powerful Asian businesses, the EXR Foundation will seek to offer a safe-haven alternative for businesses that seek improved information security, easier cross-border trading, and better access to international markets. EXR is proposed to consist of a basket of leading fiat currencies, equal-weighted and collectively valued at USD1 per token at its date of inception.
Mr. Norihiko Ishihara, founder of EXR Foundation Ltd, had the following to say:
“EXR Foundation is a non-profit organization that brings world-class businesses and dynamic and growing industries such as blockchain, telecoms, e-commerce, retail and finance together to strengthen the global economy. I strongly believe that EXR will provide trusted, diversified stability against negative global events that negatively impact individual fiat currencies”
About EXR FoundationThe EXR Foundation is a global Fintech group registered in Singapore. The non-profit company will be committed to applying the latest blockchain technology and sophisticated digital asset ecosystems in order to build a better global financial system. By leveraging its unique insights, network and access to capital, EXR Foundation will actively build, support and invest in companies with exceptional potential.
To stay up to date with the latest EXR developments, please visit exr.org or contact info@exr.org
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