Green World Fintech Services, a Taiwan-based financial technology startup, last week announced plans to introduce a new digital token into the country’s financial markets. The new token will be pegged to the value of the New Taiwan Dollar (NTD) and will be built on the ethereum (ETH) network.
The new ethereum network-based token referred to as a “stablecoin” and would be known as the Taiwan Digital Token (TWDT), a stablecoin is usually less volatile given that its value is bonded to a fiat currency or other hard assets. The market value of the TWDT will be calculated based on the current value of the NTD market and traded according to the standardized digital rule set known as ERC20.
Tokenization of TWDT to Combat Financial Vices
According to reports by a local news agency – the Taiwan News, Green World Patents plans to tie the new TWDT to an already existing fiat currency so that it will be less volatile than the other digital currencies in circulation within Taiwan such as Bitcoin and Ethereum. The report also disclosed that Green World Fintech Services have patented a unique transaction process for the tokenization of the New Taiwan Dollar (NTD) which, they assert that if implemented, would protect the currency from being used for frauds and other financial graft activities like money laundering as well as to ensure that the token remains compliant of regulations.
To significantly increase the likelihood of the new digital token being accepted in the Taiwanese market, Green World will be collaborating with various established financial institutions in Taiwan. For that reason, all the cryptocurrency accounts of users of the TWDT will be connected with trusted bank accounts. Green World aims to use this as a means of verifying the personal information of their new users before transactions will be permitted.
When the new token is launched, Green World plans to make their TWDT available for users to purchase online as well as through designated terminals in various retail. Green World disclosed in a Press release that outside auditors will be welcomed to review and offer suggestions to continuously improve the functioning of the TWDT in the market.
The Taiwanese government is exploring opportunities in the blockchain space to boost its economy and cryptocurrencies are fast emerging as a growing form of trading in the country. In April 2018, the Taiwan Financial Services Coalition revealed that the country will soon develop and launch new regulatory policies on cryptocurrency which should be ready before the year runs out.