Hi Colton,
Helie (Globcoin CEO) says:
«First, I want to say thank you very much for your in depth review . That creates the debate and your remarks are very valuable. Let us add our comments»
Ok, sounds like an SDR backing like Saga is doing.
Helie: «May I humbly say that we have been managing this basket since 2012 and wrote research papers on the theme of currency baskets since 2010 …»
I don’t like that the Purchasing Power will move independently of the USD
Helie: « In our mind, today’s purchasing power has to be assessed against the world economy , not against a single currency — not even the current main “Reserve Currency” , the USD . That takes time to explain but may I refer to our Paper published by the CFA Institute Research Foundation “Overcoming the Notion of a Single Reference Currency: A Currency Basket Approach»
How do you compete against that? Where is your retail footprint?
Helie: «We are aware of Bank stablecoins issuance projects in some countries and welcome these developments. However no Central Bank nor Private Bank digital fiat can grant the protection of the purchasing power in the global economy.
Imagine a Bank in Venezuela issuing a bank stablecoin several years ago. What would you do with that today?
Also this might make sense within a single country but not at international level. The GLX Coin aims to be a stablecoin and to become a means of payment in an international payment network»
(…)Only if people want to deal with counterparty risk and purchase it.
Helie: « Yes 100% agreed»
I do not buy that you will be able to get more-narrow bid/ask spreads than USDT
Helie: «Agreed again . We will not get a narrower bid ask spread than USDT but it is the price to pay to be stable against more than one currency in the world. If you are involved in global trading or investment you may want to look beyond USD , or EUR and reduce volatility against most currencies. Even G10 currencies such as Australian dollar has had a range of 0.48 to 1.10 against USD in the last 15 years GLX brings stability to most currencies . However I have to say that our platform is about to launch 2 tokens linked to a single currency following a request from some of our clients and in order to meet everyone’s needs .»
Or have you created a new definition for Scalability: “Stablecoin Units Issued per Second?”
Helie: «Scalability refers to financial institutions’ ability to handle increased market demands.
In Globcoin’ s case scability means the capacity of our platform to issue a growing amount of GLX ,potentially unlimited, while keeping the link to the currency basket on a 1:1 ratio basis
If a hedge fund wants to hedge 50 mios of its exposure to cryptos , we will be able to issue the corresponding amount of GLX almost immediately due to our access to interbank FX markets»
And finally….the only thing that ACTUALLY matters for a Stable Currency: Will the Saudis be requiring your Stablecoin as payment for their oil? NO
Helie: «LOL ;)»
