A new stablecoin called eUSD is entering the cryptocurrency market.
MobileCoin, a privacy-focused cryptocurrency and payments company, has joined forces with the stablecoin platform Reserve to launch a new stablecoin.
According to the MobileCoin blog post, the stablecoin called Electronic Dollars (eUSD) is fully collateralized. The company highlighted that eUSD is backed by other stablecoins, such as TrueUSD (TUSD), USD Coin (USDC), and Pax Dollar (USDP).
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What is unique about this stablecoin is that its transaction data is encrypted using end-to-end zero-knowledge. In a nutshell, only the parties involved in the transaction can see that private data.
The eUSD whitepaper, MobileCoin argued:
To our knowledge, no project has created a native stablecoin with privacy properties, which is a first-class citizen in the ecosystem, and which never requires the use of ‘non-private’ transaction technologies to use normally. In short, no one has yet actually created a private digital dollar.
The stablecoin was built on the MobileCoin blockchain, optimized exclusively for mobile devices. On top of that, MobileCoin claims that eUSD will take MobileCoin token (MOB) features.
It is worth noting that users who want to use eUSD will have to pay transaction fees. The company noted that per transaction, users will have to pay $0,0026 in eUSD.
The whole stablecoin relies on a centralized governance structure making MobileCoin Foundation its main governance body. This essentially means that MobileCoin Foundation is responsible for electing “governors” who authorize minting and burning eUSD.
The company claims that despite relying on end-to-end zero-knowledge proof encryption, eUSD complies with the existing crypto laws. Namely, MobileCoin highlights that eUSD complies with all know-your-customer (KYC) and anti-money laundering (AML) requirements.
Joshua Goldbard, Founder of MobileCoin, when talking about the release, noted:
Our sincere hope is that Electronic Dollars help to bring about a more egalitarian future, one where human rights and commerce stand on equal footing. We all deserve financial equity in this life.
It is worth noting that initially, eUSD will be available only on the mobile payment app Moby. However, the company highlighted that eUSD will be available to “all partners in the MobileCoin ecosystem.”
