Edelcoin Founder: The Future of Stablecoins is for those backed by real-world assets not fiat currencies

Edelcoin Founder: The Future of Stablecoins is for those backed by real-world assets not fiat currencies

Given the focus in the past months on the topic of stablecoins, and with the launch of Paypal’s stablecoin pegged to the U.S. dollar, centered around discussions on how stablecoins will fair in the future, it is very interesting to see Edelcoin’ s launch of a stablecoin, not backed by the dollar or eyuan but backed by real world assets!

Paypal in its press release for example stated, fully-backed, regulated stablecoins have the potential to transform payments in web3 and digitally native environments. Today the stablecoin market is a $120 billion according to data from TradingView yet it is expected to grow to $2.8 trillion in the next according to broker Bernstein research report released this month.

Yet stablecoins face challenges include regulatory uncertainty, technical vulnerabilities, market fluctuations, and liquidity issues. Here is how Edelcoin comes in. It is a stable payment token potentially inversely correlated to inflationary fiat currencies. According to its creators as a payment token decoupled from monetary policies and fiat currencies, Edelcoin serves as an effective hedge against inflation. Edelcoin is backed by real-world assets.

The Edelcoin payment token, issued out of Switzerland is backed by a basket of pre-existing precious and base metals. The Edelcoin basket is structured to be less volatile than single asset-backed tokens, providing a stable or low volatile store of value, detached from inflationary fiat currencies, independent from monetary policies. The Edelcoin token is issued as ERC-20 Token on Ethereum blockchain followed by additional EVM compatible chains and traded on centralized and crypto exchanges (secondary market).

Each Edelcoin has an excess reserve of backing metals, in total corresponding to 125% of the actual metals embodied by each Edelcoin. To learn more and understand this new concept of stablecoins, LaraontheBlock interviewed Edelcoin’s Founder Andreas Wiebe to learn more about the benefits of Edelcoin how stablecoins backed by dollar will falter, and their interest in expanding into the MENA region.

  

1. What is Edelcoin and why should a stablecoin backed by real assets be created? What are these global assets?

From my perspective, the only stablecoins that are truly stable are those backed by tangible resources like precious metals. Other underlying assets (such as other currencies, real estate, etc.) do not offer long-term security. Currently, Edelcoin is the only one globally backed by tangible resources like precious metals. Throughout history, precious metals have always been considered a form of security.

2. How does PayPal’s release of a USD-backed stablecoin contribute to the growth of the stablecoin market, and how does this fit into your plans for Edelcoin?

Anything backed by the dollar will already suffer significant losses in the upcoming year. We are already witnessing the global decline of the dollar. Now, the BRICS countries are introducing their own currencies, dealing a death blow to the dollar. The dollar has already lost its value. A 95% absolute decline! Worldwide, major countries are trying to sell off the dollar and exchange it for precious metals or other currencies.

3. What is Edelcoin linked to in terms of precious metals? Who owns it? Who stores it for you?

Edelcoin is tied to a basket of precious and industrial metals, providing absolute security. The precious metals are stored in vaults in Europe and Switzerland. These assets belong to our partners, who have collectively deposited them with us as the issuer.

4. How can Edelcoin users benefit?

First and foremost, I would recommend everyone to invest 10-20% of their fiat holdings into Edelcoin, thereby diversifying their overall portfolio. Additionally, the market anticipates a rise in precious metal prices, which will lead to a stable value appreciation of Edelcoin.

5. How is Edelcoin regulated?

Edelcoin is a Swiss company and has been accepted and reviewed as a payment stablecoin by the Swiss Financial Market Supervisory Authority (FINMA). Swiss regulation is widely recognized as extremely secure and trustworthy worldwide.

6. Do you have plans to expand into the MENA and GCC regions, and how?

Absolutely! There is already a blueprint in multiple directions: We are working to integrate Edelcoin into the financial landscape of the MENA and GCC regions, including trading platforms, as well as invest in the economies of the entire MENA and GCC regions.

7. Where and when will Edelcoins be traded?

At launch, we already have six exchanges: XT.com, Probit, BitForex, Blocktrade, LBank, and MEXC. Edelcoin is tradable on XT from August 14.

8. How can Edelcoin be used as a form of payment, given that precious metal prices are not stable?

Precious metals, backing up each EDLC are industrial metals and looking into historical perspective, these metals show an upward trend. More information on backing metals are here: https://edelcoin.com/transparency/

Edelcoin is accepted as a digital currency and can be spent in businesses that accept cryptocurrencies, much like Bitcoin. Additionally, we are working on installing ATM machines in several countries, enabling easy deposit and withdrawal of fiat currencies for enhanced flexibility.

9. Can users exchange their coins for the actual precious metals they are linked to?

Of couse! On the Edelcoin website, there is a “Boutique” section  where anyone can exchange their Edelcoins for silver and gold coins – to my knowledge, no one else offers this!

10. How do you envision the future of stablecoins and crypto payments, and how can businesses, governments, and organizations benefit from them?

In my view, there will be a future return to currencies backed by precious metals. A stable currency spells success and security for any business engaged in buying and selling. Such certainty can only be provided by a currency that is 100% backed. Pension funds and trading companies dealing with resources like oil, gas, and other commodities will find a solution and use the stability of Edelcoin.

11. Any other news or updates that Edelcoin would like to share?

In the next three months, we will be installing the first ATMs in Europe and Asia. Contracts with currency exchanges have already been finalized. We are open to further partnership inquiries. Please reach us  at partner@edelcoin.com

Oman announces upcoming launch of Virtual asset regulatory framework

Oman announces upcoming launch of Virtual asset regulatory framework

The Oman Capital Market Authority has announced that it will  establish the Virtual Assets Regulatory Framework to regulate and develop the market in the Sultanate of Oman.

The Capital Market Authority (CMA), which regulates and develops the Sultanate’s financial markets for the capital market and insurance sectors, is planning to establish the new proposed regulatory framework for Virtual Assets (VA) and Virtual Asset Service Providers (VASP). 

As per the press release, this move highlights the Sultanate’s growing recognition and the CMA’s proactive approach to develop the digital assets and fintech industry in Oman.

This important initiative in Oman was announced during a public stakeholders engagement session held at the CMA recently and being led by the CMA. By regulating and developing the virtual assets industry, the CMA aims to provide an alternative financing and investment platform for issuers and investors, while mitigating the risks associated with this asset class.

The CMA is in the process of defining a comprehensive and facilitative regulatory framework, which will include a new regulation to cover all virtual assets activities, a licensing framework for all VASP categories and a supervisory framework to identify, assess, and mitigate ongoing risks. The aim of this new regulation is to establish a market regime for virtual assets that includes rules to prevent market abuse, including through surveillance and enforcement mechanisms.

The proposed new regulatory framework is envisaged to cover activities such as crypto assets, tokens, crypto exchanges, and initial coin offerings, among others. The regulation for virtual assets in Oman is important, as it will provide a clear and secure framework for the growth of the virtual assets industry. The move towards digitalization and the adoption of virtual assets aligns with the Sultanate’s Vision 2040 of a digitally transformed economy and financial sector, while attracting foreign investments into Oman.

The CMA has also appointed XReg Consulting Limited, an international policy and regulatory consultancy specializing in virtual assets, and Said Al-Shahry and Partners, Advocates & Legal Consultants (SASLO), an Omani law firm, to advise and assist the CMA. This collaboration brings together expertise in policy, law and technology to assist in the creation of a comprehensive regulatory framework for virtual assets in Oman.

Back in  June 2022 Oman Capital Market Authority  issued its new Securities Law (46/2022) which  stipulates that the authority can “Agree to application of technologies, virtual digital investments or any products or services in the areas related to the provisions of this law, as set out in the Regulation.”

Oman was only one of the first countries in the region to allow crypto mining , mining its first Bitcoin in December 2022.    While The Oman Water and Waste Water Services Company ( OWWSC), member of Nama Group, trialed a stablecoin linked to the Oman Riyal. The company signed an MOU with Oman based Digital Digits, the creators of Easy coins and Connected Chains to trial “ Hasalah” a stablecoin Wallet.   

Oman Corporation trials stablecoin pegged to Oman Riyal

Oman Corporation trials stablecoin pegged to Oman Riyal

The Oman Water and Waste Water Services Company ( OWWSC), member of Nama Group, to trial a stablecoin linked to the Oman Riyal. The company signed an MOU with Oman based Digital Digits, the creators of Easy coins and Connected Chains to trial “ Hasalah” a stablecoin Wallet.

The companies have agreed to trial a cryptographic stablecoin pegged to the Omani Riyal to be utilized as payment from subscribers in select OWWSC customer halls as well as on Easy Coin. Payments will be made using Hasalah Digital Wallet.

HH Sayyid Azzan Bin Qais Al Said, Co-Founder of Digital Digits states, “We are proud to empower such a trial within the Sultanate of Oman which in turn will improve Easy Coins’ service competitiveness to match global players in this space. Easy Coins customers will significantly benefit from the reduced cost of payment processor fees to use our service with Hasalah”.

Qais Al Zakwani, CEO of the Oman Water and Wastewater Services Company, adds: “In line with the company’s ambition to keep pace with the digital transformation and to provide our customers with innovative options to pay their monthly dues, we are extremely pleased to enter into this partnership, through which we hope our customers will be provided with a new experience to pay bills through the Hasalah wallet, when launched”.

Hamood Al Hamadan, Director of SaS Center from Ministry of Transport, Communications and Information Technology (MTCIT) said, “We believe that the advancement of technology in Sultanate of Oman is in need of increased collaboration and coordination of such trials. Through supporting technology innovation and experimentation by the government and private sector, we foresee many local tech products growing and scaling regionally and globally.”

Nabil Al Siyabi, CEO of Connected Chains Said, “We are excited to work with OWWSC, Easy Coins and the other relevant stakeholders in tokenizing the Omani Riyal to enable real life benefits in doing so to payments. We welcome any other government or private entities interested in accepting the tokenized Omani riyal, when fully rolled out with its associated benefits.”

In June 2022, The Executive President of the Central Bank of Oman, Mr. Tahir Salim Al Amri, commented during the 7t Edition of the new Age Banking Summit on the topic of CBDCs (Central Bank Digital Currencies)  that the Central Bank of Oman is working to issue its own CBDC.  

In Parallel, the Oman Capital Market Authority issued its new Securities Law (46/2022) which stipulates that the authority can “Agree to application of technologies, virtual digital investments or any products or services in the areas related to the provisions of this law, as set out in the Regulation.”

Additionally Oman is working towards tokenization of real-estate. The Oman Capital Market Authority (OCMA) is set to include real estate tokenization in its virtual asset regulatory framework, a report quoting an advisor of the authority has said. According to the report, Oman expects to complete drafting the virtual assets regulatory framework by Q3 of 2022.