According to the statement made by the London Block Exchange (LBX), the newly created cryptopound will be linked to the price of GBP on a 1:1 basis.
As per Benjamin Dives, the chief executive at LBX, the first cryptopound will see the world in the upcoming 10 days. It will be used primarily for payments in the over-the-counter deals on the London market. Subsequently, the cryptopound will spread to the commonwealth exchanges, which do not support fiat banking, and finally the use cases will include securities altcoins, which desire to settle the dividends in the LBXPeg.
After its launch in previous year’s November, the LBX has become one of the most popular cryptoexchanges in the United Kingdom. Like the majority of other cryptoexchanges, it recognizes a substantial value in the idea of a stablecoin. The company offers a refreshed idea of the stablecoin in order to win over domestic cryptotraders, providing the customers will completely transparent audits, and promising supervision structure and proper distribution schedules, all three of which are drastically lacking in the Tether stablecoin, which is pegged to the value of US dollar.
The newly released LBXPeg currency will provide customers with effortless and swift transfer of the cryptopound on a global scale. Apart from being a stablecoin, LBXPeg also provides built-in use cases, such as firm dividend allocation to shareholders utilizing Ethereum-based smart contracts.
At first, the cryptopound will be running on the ERC-621 standard, which is an improved well-known ERC-20 standard. According to the firm, it will ensure that the currency remains flexible enough in terms of total supply, in order to match its GBP possessions in a separate bank account. In the end, the firm plans to issue its stablecoin on other blockchain platforms in accordance with the compliance audits.