PricewaterhouseCoopers (PWC) and Cred Partners To Launch A Stablecoin Backed By USD
PricewaterhouseCoopers (PWC), the global professional services firm collaborated with Cred, the decentralized lending platform to invite more trust and subsequently more traders in the cryptocurrency eco-system by advancing stablecoin technology.
Spanned across 158 countries, PWC hosts several different financial firms. The firm currently employs over 200,000 employees dedicated to quality assurance, advisory and tax services. Whereas Cred is found by former PayPal technologists Dan Schatt and Lu Hua and the platform offer open access to cryptocurrency-based credit options, regardless of where the seeker may reside.
Cred is spread across the globe with branches in Munich, San Francisco, Shanghai, Sydney, and Singapore. The platform has managed to secure over $250 million in lending capital for its clients by using blockchain. Schatt shares his excitement about the partnership with Bitcoin Magazine. He said:
“This is one of the first times PwC has formed a joint business relationship with a company focused on the blockchain and crypto. We’re looking to help people borrow crypto the way they would fiat and treat it like any other asset class. If you go to any bank, it won’t offer crypto loans because it doesn’t acknowledge crypto as a real asset class. This is bad because we need new ways of looking at custody and lending, and this is the first time a big accounting firm has said it would work with a company in this space.”
Addressing the imposing issue that cryptocurrency faces, its volatility, Schatt explains that this is due to the lack of liquidity in the crypto market and trading can frequently result in price swings. This has many institutional investors cautious towards the digital assets in fear of losing their funds due to crypto’s consistent price drops.
The skeptic has although shown an incline towards stablecoins, i.e the virtual asset is tied to fiat currencies like the U.S. dollar. While the solution might sound simple, the trouble is that stablecoins require a reserve ledger built for fully decentralized assets that can provide value substantiation and transparency.
PWC plan to educate both investors and startups alike on how this technology can advance. Moreover, PWC will offer insight on factors ranging from security and risk management to governance and control to potentially improve upon present industry practices.
The new partnership has Schatt confident that once stablecoins are evolved further they will increase the level of transparency in the crypto market and boost the economy by getting more mainstream investors involved. He states
“If you can get a stablecoin that’s very transparent and tied to USD, for example, that’s a very powerful confidence booster. Imagine, also, that you can get out of a rapidly depreciating currency and get into something that’s giving you a return on your money between two and five percent. That’s truly powerful.”
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