Travel Wallet and Avalanche have signed a memorandum of understanding to develop a stablecoin based on the South Korean won with smart programming features.
MAIN CONTENT
Travel Wallet is a South Korean fintech startup collaborating with the Avalanche Blockchain platform.
Both parties are developing a stablecoin pegged 1:1 to the South Korean won.
The stablecoin will be designed with programmable features based on Smart Contracts.
What is the collaboration between Travel Wallet and Avalanche to develop a stablecoin?
Travel Wallet, a South Korean fintech startup, has signed an MOU with the Avalanche Blockchain platform to jointly develop a new stablecoin pegged to the won.
According to Edaily on July 1, this collaboration aims to create a smart stablecoin for the cryptocurrency market, leveraging Avalanche's Smart Contract features. The price stabilization based on a 1:1 ratio with the won enhances reliability and practical application.
What are the outstanding features of the stablecoin based on the won?
This stablecoin not only pegs the value to the won exchange rate but also has programmable features, allowing customization of smart contracts to meet diverse trading and financial application needs.
Issuing a programmable stablecoin on the Avalanche platform opens up many opportunities for DeFi and digital finance development in South Korea.
Mr. Lee Min-ho, CEO of Travel Wallet, July 1, 2024
Smart Contracts enable the automation of transactions, integration of complex rules, and risk minimization through transparency and security based on the Avalanche Blockchain — a Layer 1 platform proven by its performance and scalability.
What is the significance of issuing a programmable stablecoin for the South Korean cryptocurrency market?
This collaboration marks a significant step in the acceptance of cryptocurrency in the Asian market, specifically South Korea, as a stablecoin pegged to the local currency helps reduce price volatility and lays the groundwork for new DeFi products.
"Stablecoin pegged to the won will boost liquidity and stability for the digital financial ecosystem, helping connect fiat currency and cryptocurrency."
Ms. Kim Seung-ah, Blockchain Expert from South Korea, 2024
What are the practical examples and potential applications of programmable stablecoins in digital finance?
Stablecoins designed on Avalanche can be used in international payments, DeFi transactions, staking, and providing diverse financial services. For example, stablecoins like USDT or USDC have affirmed the importance of stablecoins in the global cryptocurrency ecosystem. Pegging to the won will help local users and businesses easily integrate and use.
Comparison of some characteristics between traditional stablecoins and programmable stablecoins on Avalanche
Criteria Traditional Stablecoin (e.g. USDT) Programmable Stablecoin on Avalanche (Travel Wallet) Pegging Price USD 1:1 South Korean Won 1:1 Programmable Features Limited, mainly used for payments and transactions Supports diverse Smart Contracts, customizable transactions Blockchain Platforms Ethereum, Tron, Binance Smart Chain Avalanche – Layer 1, high scalability Usage Purpose Transactions, storing stable value DeFi, payments, staking, complex financial applications
Frequently Asked Questions
What is a programmable stablecoin? A programmable stablecoin is a stablecoin integrated with Smart Contracts, allowing customization and automation of financial transactions on the Blockchain platform. Why choose Avalanche to develop a stablecoin pegged to the won? Avalanche stands out with fast processing speed, low transaction fees, and a secure consensus mechanism, suitable for modern financial applications. What are the benefits of pegging a stablecoin to the won? A 1:1 peg helps stabilize value, reduce volatility compared to other cryptocurrencies, and is convenient for South Korean users and businesses. In which fields can this stablecoin be applied? It can be used in international payments, DeFi, staking, DeFi transactions, and many other digital financial products. How does Smart Contract affect stablecoins? Smart Contracts help program automatic rules, increase transparency, security, and expand the usability of stablecoins.
Source: https://tintucbitcoin.com/avalanche-hop-tac-phat-trien-stablecoin-krw/
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