A new stable cryptocurrency has been launched to bring decentralised regulation and stability to the blockchain. The ARC Reserve Currency, founded by global crypto expert and University of Cambridge Research Fellow, Dr Garrick Hileman, will track the most stable fiat currencies and real-world assets. An ICO was launched today on 15 December for ARC, managed by a not-for-profit SPV (special purpose vehicle), targeting an initial raise of up to $5 million.

ARC is less volatile than other utility tokens (such as bitcoin), growing with inflation over the long term, supported by traditionally stable assets such as loans and national currencies. As a token part of the Ethereum blockchain, ARC is touted as a stable alternative for investors and will be freely tradable, either through exchanges or directly peer-to-peer.

According to ARC, the need for a stablecoin is the missing piece in the world of cryptocurrenices, as even highlighted by Ethereum’s creator, Vitalik Buterin, in his post: “The Search for a Stable Cryptocurrency.” Unlike the Tether stablecoin, which is as stable as the US dollar and still subject to socio-economic factors and inflation, ARC will be backed by assets and track the rate of inflation across currencies of the G10 countries and those that are at the top of the Bank of International Settlements trade weighting analysis, such as the USD. ARC has in-built protections against under- and over-valuation to maintain a stable and resilient price, keeping the currency stable in real terms.

“Many view the advent of a successful stablecoin as a potential tipping point to broader cryptocurrency adoption,” commented  Dr. Garrick Hileman.Popularity of cryptocurrencies has sky-rocketed recently, yet the impact of bad actors and speculators has created a Wild West-type environment. The ARC stablecoin can compliment existing digital assets and represents an important addition to the cryptocurrency ecosystem, facilitating new uses for cryptocurrency and related technologies, such as smart contracts.”

Stephen Findlay, co-founder of ARC, former Fidelity executive and CEO of BondMason, added: “Working closely with the Jersey Regulator and Jersey Government, ARC is the first regulated crypto-currency of its kind, and the first ICO out of Jersey. This is a new era for the crypto-ecosystem, and regulated cryptocurrencies – or crypto-securities – are likely to be a significant area of future growth for the cryptocurrency ecosystem.”

Henry is Junior Reporter at IBS Intelligence, follow him on Twitter or contact him at: henryv@ibsintelligence.com
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