The bitcoin billionaires’ twins, Tyler and Cameron Winklevoss are not letting the bear market or two subsequent Bitcoin ETF rejections slow their pace. The Twin delved right into the mix and launched a regulated stablecoin.
Gemini Trust Company, digital exchange owned by the Winklevoss twins, unveiled the Gemini dollar, on Monday. A stablecoin that will allow people to send and receive U.S. dollars on the Ethereum cryptocurrency network. The newest token aims to maintain a value one on one with the U.S. dollar and has received approval from the New York Department of Financial Services.
The key strategy behind it is to bridge the gap between the traditional banking system and the cryptocurrency market. Though many people explore digital currencies as investments, they still hesitate to use it as currency i.e. to buy and sell goods. In order to facilitate such transactions, Gemini dollars enables people to move capital around the world by converting U.S. dollars to Gemini dollars and the reverse. The Gemini dollars will be deposited in a U.S. bank, State Street.
While the State Street representative declined to comment, Tyler Winklevoss told CNBC over the phone:
“It is really a matter of bringing your US dollars on to the blockchain and making them borderless 24/7.”
Winklevoss compares bitcoin with gold, in terms that both are used as a store of value, versus a means of payment, he elaborated:
“If something is a good store of value, you don’t want to spend it.”
Moreover, they note that the volatile nature of cryptocurrencies has not only raised questions about their viability but also presents as a potential risk for a plausible payment method. According to the data by CoinDesk, so far in 2018, bitcoin has lost 53 percent. Winklevoss states: