We started working on a protocol / standard / software to enable FIAT tokenization by trusted anchors.
To be clear trusted anchors are regulated entities that everyone can trust that at any point in time they can redeem their tokens.
The idea behind the project is to have one virtual currency like virtual EUR being issued by any anchor that respects the standard and uses the open source software that we provide.
We will try to build it from bottom-up, from small regulated entities in europe like Payment Institutions and Electronic Money Institutions and grow up towards the banks.
As an example: a small regulated payment institution (even a regulated crypto exchange lile Bitstamp would qualify) would deploy our software and will be able to issue virtual EUR. Basically the anchor (in this example Bitstamp) will enable its users to issue vEUR while they keep the EUR in escrow, visible to public (also insured by the protocol and software). When a new anchor wants to adhere the the protocol it will install the software and it's users will be able to issue the same kind of vEUR (fungible).
The goals of the protocol / software are:
- to create a democratic federation of anchors that can all issue same tokenized currency
- no private entity like Theter will have total dominance and control over such a token
- total transparency of the monetary base
- total transparency of the protocol and governance
We will release the specifications of the protocol for public consultations with the stellar community, and we hope to have feedback.
We also hope if stellar community will support our idea that also stellar foundation would like to get involved since we believe that if we pull this off and make it very easy for anchors to issue virtual EUR this will help the whole stellar project to scale very fast and to get a lot of traction.
Thank you !
PS: we are doing this because we need this software because we will be a regulated anchor to issue vEUR but we think making this part of the software free and open and adding the possibility to create a federation will help adoption and will benefit us all. Even if some of our competitors will benefit from this open/free software if this will spark mass adoption we will be better of with a small slice from a much bigger cake.