In a bid to add flexibility to governments in executing their economic policies, Atom Foundation, that focuses on liquidity solutions on the blockchain, today announced the launch of its not-for-profit Central Bank Distributed Secure Coin (CBDSC), a new, patent-pending stablecoin alternative technology.
The CBDSC, which is an improvement over the current Central Bank Digital Currency (CBDC) projects, will also allow governments and central banks to maintain a unique monetary policy on top of existing CBDCs.
“All the current CBDC projects are not secure and have zero protection against volatility, price manipulation, hacking, and loss of funds,” said Yoda Regev, CEO at Atom Foundation.
“Our CBDSC, when compared to stablecoin or current CBDC solutions is equivalent to comparing smartphones and the telegraph and will allow issuers more leeway to directly implement economic policy on the blockchain, and guard against currency volatility and mismatch,” Yoda said, adding that CBDSC will offer a lifetime license at no cost.
While the current CBDCs pegged to a fiat currency are exposed to unexpected volatility due to trading or manipulation and users holding such funds can lose these funds via hacking or loss of wallet access, the CBDSC includes a patent-pending solution with a built-in fluctuation freeze that removes any possibility of volatility, and drives value by pegging to a currency index or other pricing source which is unable to be deviated from, regardless of market volatility.
Also, the CBDSC has a unique regulation layer, that allows funds recovering, privacy-based zero-knowledge proof, and bad actors precaution.
Besides, the ability to freeze funds through the CBDSC layer, there is also the ability to monitor and tax income and finer controls like omitting funds that have been gifted to friends or family.
The CBDSC regulation layer protocol also allows issuers to control the CBDC according to the economic policy the government sets forth and even dealing with unknown black swan events.
Unlike current CBDC’s, this is possible even after the digital currency is distributed to the public. The flexibility of the regulation layer protects the ability to update the CBDC governance policy without the need to do a recall or reissuance of a new digital currency version merely to extend functionality or execute new policy.