On June 12, the Honestnode workforce introduced the launch of a brand new stablecoin undertaking constructed on prime of the Bitcoin Cash community referred to as Honestcoin (USDH). The new token was made utilizing the Simple Ledger Protocol (SLP) and lately launched on the cryptocurrency buying and selling platform Coinex. This week information.Bitcoin.com spoke with the founding father of Honestnode, Jian Shi, to study extra about this new stablecoin.
A Discussion With the Founder of Honestnode
Over the previous couple of years, stablecoins have grow to be a well-liked car inside the cryptocurrency panorama and since the start of tether (USDT), there’s been a decent number of launched stablecoins on networks like Omni Layer, Ethereum, and Tron. These stablecoins have been collateralized in several methods.
Now the Bitcoin Cash network has a stablecoin referred to as honestcoin (USDH) which was created utilizing the SLP platform by the Honestnode group. USDH is a regulated stablecoin backed 1:1 for U.S. dollars and the Honestnode staff goals to construct numerous types of infrastructure to help the token’s use instances. News.Bitcoin.com spoke with Honestnode founder and CEO, Jian Shi, who mentioned how the firm plans to bolster the potential of cryptocurrencies and blockchain options.
News.Bitcoin.com (BC): Can you inform our readers just a little about Honestnode?
Jian Shi: Honestnode has created a regulated and safe stablecoin referred to as honestcoin (USDH), and is constructing a various set of value-added software situations and instruments to help its end-users. This will present the Honestnode customers with a stablecoin that’s really beneficial in each the cryptocurrency world and the actual world. Honestnode’s ecosystem consists of six main merchandise：
- Honestcoin (USDH): A regulated stablecoin backed by the U.S. greenback.
- Honestpay: The USDH model of Alipay.
- HonestOTC: An over-the-counter buying and selling platform for USDH and different main currencies together with fiat foreign money.
- Honest Financial: A monetary service platform that may be a fiduciary receiver for USDH.
- Honestcard: A bodily financial institution card that backs up the USDH accounts of customers.
- HonestAPI: Allowing third-party purposes to simply implement the USDH assortment.
Our mission is to unleash the true international energy of foreign money. Honestcoin is a safe, environment friendly and low-cost solution to switch belongings round the world. With Honestcoin, customers break by way of exterior constraints, take away pointless restrictions, and bypass pricey intermediaries to take care of complete management over their international belongings. Honestcoin helps bolster the freedom of cash.
BC: What made you determine to make use of the Bitcoin Cash (BCH) community to create a stablecoin?
Jian Shi: As the first regulated stablecoin on the BCH chain, USDH can fill a niche in the BCH ecosystem that lacks a regulated stablecoin. At the similar time, Bitcoin Cash helps giant blocks, with low switch charges (about 1 satoshi) and zero affirmation (immediate arrival of small quantities). From the perspective of each switch charges and speeds, it’s superior to the BTC Omni Layer protocol and the ERC20 protocol constructed on Ethereum.
BC: Can you inform our readers how the USDH stablecoin is backed by your U.S. associate?
Jian Shi: Honestnode works with Koi Compliance, a San Francisco-based supplier backed by Binance Labs, to make sure that USDH complies with all relevant authorized necessities, together with U.S. federal and state cash transmission legal guidelines and AML/CFT guidelines. Among different issues, USDH follows all necessities of a FinCEN-registered MSB by performing thorough identification verification, due diligence, beneficiary possession checks, sanctions screening, transaction monitoring, and regulatory reporting. Additionally, Honestnode works with Cohen LLP to concern audited assertions once in a while to make sure that USDH is backed by USD 1:1.
USDH’s custody system is equivalent to that of TrueUSD. Specifically, all USD quantities used to buy USDH are positioned right into a custody account managed by Prime Trust LLC, a Nevada-chartered belief firm. USDH’s operational employees and administration members haven’t any authorized declare to such USD collateralization quantity.
BC: Were there any regulatory hurdles you needed to cope with earlier than launching the Honestcoin (USDH) challenge?
Jian Shi: There have been no regulatory hurdles. The USDH workforce proactively researched the regulatory framework for fiat-backed stablecoins and associated compliance issues and determined to work with established suppliers comparable to Prime Trust LLC and Koi Compliance. The launch, subsequently, was a clean course of.
BC: Will Honestnode proceed coping with regulators going ahead?
Jian Shi: Yes. Honestnode will, for USDH, adjust to all relevant authorized necessities on an on-going foundation. We will, subsequently, proceed to work with regulators in achievement of sure of those obligations (e.g. regulatory reporting and asset blocking).
BC: USDH lately launched on the trade Coinex. Do you propose to launch on another exchanges in the future?
Jian Shi: We will steadily enter listings on extra mainstream cryptocurrency exchanges in the future. Honestnode is presently targeted on constructing USDH purposes in the actual world, to unravel high-cost cost and remittance points, and gaining extra non-cryptocurrency targeted audiences.
After we’ve amassed a cushty variety of customers in the cost and remittance situations, we’ll broaden the USDH’s presence in the cryptocurrency secondary market buying and selling and enter extra digital foreign money exchanges.
BC: You labored with the SLP builders when creating USDH. Can you inform us about this expertise?
Jian Shi: It was an unforgettable expertise, and we went via the gradual enchancment of the Simple Ledger Protocol (SLP). While the course of was difficult and arduous, SLP continued to enhance and help us till USDH was launched.
There is little question that this can be a nice workforce and we benefited quite a bit from their cooperation. At the similar time, the improvement group of SLP could be very enthusiastic and useful. They all the time welcome new builders and are prepared to share numerous issues encountered in the improvement course of.
BC: Do you assume a stablecoin created utilizing Bitcoin Cash is useful to BCH?
Jian Shi: As the first stablecoin on BCH, USDH can fill the hole in the BCH ecosystem. We will broaden USDH in the cost and remittance situations, which can assist improve BCH’s exercise. In addition, with the improvement of SLP and different protocols, there ought to be increasingly purposes based mostly on the BCH chain, and USDH can present entry to cost implementation for these purposes.
BC: There are loads of stablecoins now. Do you assume it’s good to have a spread?
Jian Shi: From an early age, we discovered that Emperor Qin Shi Huang’s unification of the six Chinese nations can be very useful at the time, whereas on the different hand, the super-globalization of the Euro of as we speak reveals many issues and intricacies. So, whether or not financial variety is sweet or dangerous can’t merely be determined so shortly. The monetary system is very associated to the nationwide coverage, the fiscal and tax system, and the financial system.
As Honestnode, we have to keep humble in the face of such an objectively difficult existence and system, to attempt to create software situations whereas sustaining the regulation, stability, and effectivity requirements. Under the similar compliance framework, we’re open to different secure currencies and welcome different groups to work with us to resolve the problem of foreign money segregation.
BC: Do you assume USDH is a competitor to different stablecoins like tether (USDT) and Gemini greenback (GUSD)?
At current, the foremost software state of affairs of tether is digital foreign money commerce, however the under-regulation of Tether is an present danger of significance. Whereas, the Gemini greenback is backed by the Gemini trade, which trades primarily in digital currencies. The USDH is initially positioned to be utilized in the actual world to unravel the issues of excessive value and the hindered path in the means of cost and remittance. Because the goal market is totally different from tether and Gemini greenback, there can be no direct competitors in the preliminary stage.
What do you consider the Honestcoin challenge and the stablecoin USDH? Let us know what you consider this topic in the feedback part under.
Image credit: Shutterstock, Honestnode, Simpleledger.information, Honestcoin, and Pixabay.
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