Top accounting firm PwC is teaming up with cryptocurrency lending and credit startup Cred to innovate stablecoin digital asset technology. Their main goal? To create a stablecoin backed by the U.S. dollar.
Stablecoins are cryptocurrency pegged to a more stable asset like fiat or gold. These backed cryptos are becoming more popular as cryptocurrency’s biggest problem continues to be the lack of liquidity and consistent market volatility.
Dan Schatt, Cred co-founder and president, dares us all to dream,
“Imagine…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.”
PwC’s U.S. blockchain and cryptocurrency leader Grainne McNamara expands on this idea stating, “We are excited to work with Cred to help increase industry awareness regarding how the asset-backed digital token ecosystem can be secured and scaled on behalf of participants along the digital asset value chain.”
PwC and Creds hope to accomplish a lot in their partnership, but mainly, they are looking to change the way people view cryptocurrency as a digital asset used for borrowing and lending. Currently, institutional investors, government entities, and larger companies find cryptocurrency too risky and think getting involved now isn’t worth the gamble.
PwC isn’t just looking to bring a USD-backed stablecoin; they want to educate the public and investors, shaping the way we use distributed ledger technology. They want the industry to work with the government to improve regulatory standards and overall security.
Both PwC and Cred are confident that if they can deliver a stablecoin ecosystem backed by USD, they can make cryptocurrency the standard for lending financial services.