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BIGG Digital Assets (BIGG.C) and Blockchain Foundry (BCFN.C) join forces to deliver stablecoin accountability measures

stablecoin
05/05/2020

BIGG Digital Assets (BIGG.C) has partnered with former Equity Guru client Blockchain Foundry (BCFN.C) to deliver stablecoin development solutions using BIG’s tool suite to provide trust and risk mitigation in real-time for stablecoin creation.

These tools offer anti-money laundering (AML) and counterfunding of terrorism (CFT) to the stablecoin chain. BitRank Verified, the company’s scoring system helps to assist the risk to crypto-businesses and transactions, while QLUE, lets the company track, trace and monitor stablecoin wallets and transactions—effectively following the money on the blockchain while it bounces from transaction to transaction. Both will be embedded to allow stablecoins to list on global exchanges.

“Partnering with Blockchain Foundry is a great opportunity for BIG to partner with a team that created one of the world’s first asset token platforms. They are true leaders in innovation with a proven delivery model that ensures customer success. I feel that BIG’s comprehensive suite of tools will provide trusted and real-time risk mitigation for stablecoin creators. We are excited to be seen again as the solution to remove the allure of criminality from cryptocurrency. Our tools are part of the crypto future and we are excited to be a part of it,” said Lance Morginn, president of Blockchain Intelligence Group.

Stablecoins are cryptocurrencies tied to baskets of fiat currency, precious metals or some other asset commodity. The lure of a stablecoin is that it’s value is tied directly to the value of the currencies its pegged too, ensuring that the price fluctuations remain relatively stable.

Tether (USDT), the fourth largest cryptocurrency, is an example of a stablecoin. It’s tied to the U.S. dollar.

Source: coingecko.com

You’ll note the general lack of volatility, especially when compared to say, Bitcoin’s, which represents the usual peak-and-valley volatility common to cryptocurrencies.

Source: coingecko.com

But stablecoins and cryptocurrency in general are still a relatively new technology, and that means that anyone with a little bit of knowledge will have an advantage on those without. Herein lies the danger of graft, theft, criminality and manipulation, including fraud. And fraud is absolutely abundant in the cryptocurrency world because law enforcement is usually one or two steps behind. They’ve caught up considerably in the past few years, having closed the gap somewhat, but there is still a lot of criminal behaviour locked up on the various blockchains.

Typically, folks looking to buy nefarious goods will take their Bitcoin to the deep web. These folks have only a token amount of tech savvy—enough to recognize that Bitcoin is difficult to trace, but far from impossible. The really tech savvy types prefer the privacy coins, Zcash, Monero and Dash, because their unique raison d’etre is that they’re virtually untraceable. Tether is commonly used to circumvent the scaling issues of other cryptocurrencies, and also as a digital payment medium, which has gotten some companies into some rather hot water in recent years.

Now imagine if there was an apparatus in place to follow the money from Bitfinex to CryptoCapital, including all points of access, entry and exit, and allow law enforcement agents to converge on the location. It would have changed the narrative on early Tether and made it seem more reliable. It may be too late for Tether in this case—besides their problems run far deeper than simple misappropriation of capital—but for other stablecoins, it could be a game changer.

BIG’s proprietary system, BitRank Verified can scan crypto addresses for connections to illegal activities and criminal elements. By detecting criminal activity and giving confidence that the stablecoin can be monitored will demonstrate greater regulatory compliance. This was one of the largest problems that most politicians in the world had with Mark Zuckerberg’s proposed Libra stablecoin—that they couldn’t track it, trace it, or control its flow, and there was nothing stopping it from funding terrorist elements throughout the world. Now QLUE allows the user to look into the details around stablecoin cryptocurrency transactions, including being notified of any changes or movement and adding another level of management and enhanced due diligence for regulators and reporting.

—Joseph Morton

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