Payments Firm MobileCoin Debuts New Stablecoin eUSD
- MobileCoin, has debuted a new stablecoin in the market which is pegged in a 1:1 ratio with the US Dollar called eUSD or Electronic Dollars.
- Electronic Dollars stablecoin has been backed by a basket of other stablecoins including USD Coin (USDC), Pax Dollar (USDP) and TrueUSD (TUSD).
- The collateral for the stablecoin is held in the popular Ethereum multisignature (multisig) wallet called Safe (formerly “Gnosis Safe”).
A crypto and payments firm focused on privacy, MobileCoin, has debuted a new stablecoin in the market that is tied to the US Dollar and has been named “Electronic Dollars” (eUSD). The eUSD token is 100% collateralized and has been designed in such a way that the transactions made using the stablecoins remain private and preserve the data of the users.
In collaboration with stablecoin platform Reserve, the new Electronic Dollars stablecoin has been backed by a basket of other stablecoins including USD Coin (USDC), Pax Dollar (USDP) and TrueUSD (TUSD). Each of these transactions implemented via these tokens is encrypted using end-to-end zero-knowledge encryption and hence, does not involve data spillage.
So, it can be confirmed that only the people involved in the transactions will be able to see their data, but no one else using the network will be able to see and reveal their data. This privacy-focused stablecoin is the product of zero knowledge proofs, i.e., a technology that completes a task without revealing any of the details related to the task.
It is also important to note that eUSD is different from USTC, which crashed following the collapse of the Terra (LUNA) ecosystem which brought down the crypto market down to its knees. This is because while USTC was backed by Bitcoin, AVAX, and other volatile assets, MobileCoin’s eUSD is backed by other stablecoins which are tied to the $1 price level.
“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,”MobileCoin stated in the eUSD whitepaper.
Working of eUSD
eUSD, a one of its kind privacy-focused stablecoin will have MobileCoin Foundation as its primary governing body followed by a few elected and appointed “governors” who will have the authority to mint and burn eUSD and therefore control the supply of the entire stablecoin economy. However, this does put forth the fact that there is a certain degree of centralization attached to the transactions with eUSD which the users need to consider.
It is also crucial to note that the collateral for the stablecoin is held in the popular Ethereum multisignature (multisig) wallet called Safe (formerly “Gnosis Safe”) and the new eUSD tokens will only be minted once the “governors” confirm that there is enough collateral in the Safe wallet.
“Anybody can inspect the contract holding this basket [of collateral], to see what the current balances are. It’s a Gnosis safe, which is also one of the most highly regarded contracts on Ethereum for holding assets,”Henry Holtzman, MobileCoin’s Chief Innovation Officer explained.
Another interesting fact to be noted is that the assets backing the stablecoins are based on other chains and in order to connect the two networks, a bridge will be needed. Moreover, the plan is also to comply with AML and KYC requirements imposed by government authorities and as a result, such features will be in place at all on- and off-ramps.
MobileCoin claims that it is “building a data-protecting cryptocurrency that also complies with the law.”