(BlockBar) According to a white paper published on June 27, Swiss bank Dukascopy announced the launch of a new stable currency called Dukascash, less than four months after the official launch of its own cryptocurrency, Dukascoin (DUK +). Foreign Exchange Company has chosen the ERC-20 standard on the Ethereum blockchain and claims that Dukascash is the first stable cryptocurrency openly used by licensed and regulated Swiss Banks.
The value of new stable currency will be supported by three main legal tender currencies, including the Euro, the Dollar and the Swiss Franc. As a result, a lot of supervising work is required to ensure that every time Dukascopy makes Dukascash, they buy and store tokens equivalent to the legal currency. Similarly, whenever someone converts Dukascash to US dollars, an order equivalent to legal tender can be tracked in the crypto community.
The bank further states: ““The initial Dukascash tokens tranches of roughly CHF 10 million or equivalent in each base currency will be issued and initially kept by the Bank as ‘unreleased’ tokens. Additional Dukascash tokens will be issued in tranches, depending upon client demand. Small portions (up to CHF 100,000) of unreleased Dukascash tokens will then be released in favor of the Bank to enable it to sell Dukascash tokens to clients.”
According to the white paper, the main purpose of introducing Dukascash is to support the blockchain payment tokens issued by Dukascopy. Furthermore, the public testing phase will begin July 3.
In January, Dukascopy works with the European Cryptocurrency exchange Bitstamp. Bitstamp will support Bitcoin (BTC) transactions on behalf of Dukascopy Bank, and customers can send BTCs to their accounts, convert them into US dollars, and trade in the Swiss foreign exchange market. In addition, customers can also transfer money back to BTC’s wallet.
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