"Stablecoins are not the ideal digital asset for trying to bring fiat into the crypto world"
Caitlin Long working with BLOCKSTREAM on a digital programmable digital asset.
Blockstream is well known for his Adam Back and Samsung Mow one of the first Bitcoin developers creating their own company Blockstream with ADAM BACK as the founder.
But Back does not see his company as a Bitcoin-related one and created a fintech branch.
Peter Wuille, for example, has differences and he is also Co-Founder and one of the first developers (Batch #2 after Nakamoto, Finley, and others) responsible for SegWit and more always complained about the fintec ambitious. This reminds in a way to the Digi cash project and the sale out of the project when the main developer left the project after it was presented to the Deutsche Bank. Unlike cash, stablecoins are generally issued as intangible assets, which means they aren’t physical or don’t derive their value from contractual claims like stocks and bonds do. Because of this, they have uncertain legal enforceability. Circle and Coinbase, the creators of the USDC stablecoin, acknowledge USDC transactions may not be legally enforceable in the coin’s terms of service.
When stablecoins aren’t issued as intangible assets, they exist under Article 8 of the Uniform Commercial Code, which requires they have intermediaries. Paxos is only able to issue its Paxos Standard (PAX) stablecoin without a middleman because Paxos is a registered trust company.
Avit will be issued under a different portion of U.S. federal and state law that Long would not name because Avanti has a patent pending for the Avit’s design.
Read more: BCB Group Teams With Circle to Offer EU Institutions USDC Stablecoin Settlement
While stablecoins are considered “property” by the Internal Revenue Service, Long said it is likely Avit will be treated like cash by the IRS and a “cash-equivalent” by accountants, making it easier for companies and individuals to use Avis without negative financial consequences.
However, Avis wouldn’t function like digital dollars or central bank digital currencies, Long added.
“We’re a second layer down,” she said. “It’s just bank money that happens to be issued on a blockchain.”
According to Blockstream CEO Adam Back, the asset will be issued on Liquid – a network developed and overseen by Blockstream that is meant to move bitcoins around more quickly than the Bitcoin blockchain itself. Assets on Liquid can be traded in atomic swaps or smart contracts that allow for exchanging assets without an intermediary. In the traditional world, ACH payments to an exchange take several days to settle. If you believe it makes sense read the full story here.