TAIPEI (Taiwan News) – Taiwanese company Green World Fintech Services announced last week, that it is introducing a new digital currency into the country's financial markets, and one that will be pegged to the value of the New Taiwan Dollar (NTD).
The new digital currency, referred to as a stablecoin, is reportedly being created using the Ethereum network, and will be called the Taiwan Digital Token (TWDT). According to reports, the value of the currency will be calculated according the NTD market, and traded according to the standardized digital rule set known as ERC20.
ERC stands for “Ethereum Request for Comments” and “20” is a proposal ID number. The term signifies a standardized protocol that allows digital currencies to interact with each other, and thereby be traded, sent, or received.
The existence of the standardized rule set is what creates for a stable market and ensures a relative value can be calculated for the blockchain based digital currencies. In contrast to a crypto-currency, a stablecoin is considered to be less volatile since its value is tied to a fiat currency, or other hard assets.
Unlike many digital currencies, Green World has reportedly patented a dollar-to-token process that they assert will protect the TWDT from fraud and money laundering. This will involve the cooperation of some established banks in Taiwan, as the crypto accounts of users will be tied to “trusted bank accounts” as a means of verifying personal information before transactions will be permitted.
After a successful launch, Green World hopes to make the tokens available for purchase online, and through terminals located in certain retail stores. For users in Taiwan, the fact that the TWDT will be tied to the local currency is expected to increase confidence in the relative stability of the digital coin.
Green World is optimistic that in a small somewhat insulated market like Taiwan, where government and industry are aiming to rapidly develop the country’s digital infrastructure, that there will be plenty of opportunities for small business and individual users to make use of a fiat-pegged digital currency.
Further, Green World is the owner of the EC Pay network, one of the top three electronic payment processors in Taiwan, according to Bitcoin Exchange Guide. For the company, creating a digital currency that would be compatible with payment systems they already manage is a logical next step.
According to reports, some are skeptical that the proliferation of TWDT may surpass the available NTD currency on the market which will ostensibly give the digital token its value.
To ensure this does not happen, and that the growth of TWDT remains safely within the range of the available fiat currency on the market, Green World pledges that the system will be as transparent as possible.
According to the official press release, outside auditors will be welcomed and invited to review and continuously improve the functioning of the TWDT market, which Green World hopes will mark the start of a new chapter for Taiwan’s digital infrastructure.