Precious metals like Gold have been a part of prime commodities in the trade market. Despite the volatile movements of the Gold market, the cryptocurrency trade market is now looking at gold-backed tokens with the strategy to make cryptos more stable and reliable.
The idea of a digital gold currency as an effective and alternative payment system is as old as the internet itself. There has been immense interest building up in creating a gold-backed digital currency since the early days of the industry. These gold-backed digital currencies link a token to a specific quantity of gold.
The alternative payment in the form of a Stable Gold coin is innovative and will ensure augmented reachability, better accessibility, heightened efficiency, and more importantly transparency of transactions. Hence, in a nutshell, a gold-backed token is more like a derivative digital asset whose value is underwritten by the equivalent price in gold. Its equivalent should be present in the reserves and vaults as physical collateralized assets.
In this article, we take a look at USDR, a European payment token that has been designed to posit as the internet’s reserve currency.
Understanding USDR
USD Reserve or USDR has been designed to function as a cryptographic digital payment token. The token is issued on both Ethereum blockchain and Binance Smart Chain (BSC). USDR’s primary goal is to be recognizable under Swiss law as a payment token that will not only increase its global reach but also make it a must for every investor. The law will be the ultimate determinant of its usage and by who. USDR is multi-pronged in its use as wallet operators, traders, payment processors, merchants, service providers, etc can use it as a means of payment on the blockchain.
For every user, USD Reserve tokens are secure because they are based on cryptographically secure open-source blockchain protocols and smart contracts. USDR tokens are pegged with the U.S. dollar on a 1:1 ratio. In addition to this, they are also backed by 100% reserves. But since crypto assets are not stored in the case of USDR, the security of the user’s USDR solely depends on the users and the third-party wallets which the users utilize for the purpose.
The total USDR supply is 345 Million but due to legalities, only 100 Million are available for sale and circulation.
USDR is multiplatform
The best thing about USDR is that it functions equally well in multifarious networks all at once. This makes up for a sturdy stablecoin structure without any loss of convenience. The eclectic team behind USDR has also initiated an innovative logic for interchanging coins between different networks.
Exclusive Supply tracker
USDR has been reformed in a manner that ensures it is 100% transparent and open. The supply of the tokens is expanded only when processing mined Gold. This implies that every new coin so released is totally backed by gold.
USDR’s supply control is an important solution that consists of the inter-network component. As discussed earlier, the interchangeability of the tokens is easy and will take place through USDR issuance and exchanges. If users are looking to transact through exchanges then it will be buying and selling of coins already in circulation. Every single network will consist of an address in which the inactive coins will be stored as reserves for users. It will also have something called the system address for multi-network exchange.
USDR decentralized wallet
If you are looking at a secure decentralized wallet to store your Ether and tokens, then a USDR decentralized wallet is a great fit. The wallet is available as a browser version used to buy, store, send and even exchange tokens in a secure manner. Ensuring user privacy and security as the main to-go, the wallet is equipped with stringent security measures with a key vault, secure login, and just about everything to manage digital assets efficiently. User control is key here which is why the wallet’s simplistic UI allows users to connect to different blockchain-based applications in the most convenient manner.
The USD Reserve wallet generates passwords and keys on the device the user uses so that the user is in full control of the data and the account. Privacy is not a choice but control that is given to users to manage their wallets.
Conclusion
The biggest advantage of USDR is that they can be transferred to another party as they can be disintegrated into small units. Other advantages include:
They are transparent, secure and cost-friendly
USDR will soon be available on several other networks apart from Ethereum and BSC. Users can use USDR without changing their regular network, hence no time lost.
It is compliant with the Swiss laws signifying its sanctity in the best possible manner.
Blockchain-based digital assets especially backed by gold are attracting appeal for investors. They are always on the lookout to hedge their portfolios against fiat currencies or those stablecoins which are regulation-bound. USDR is a step forward to retain this and innovate in this space.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.