In early September 2018, the GUSD was approved by the New York Financial Services Authority (NYSDFS) and issued by the Gemini Trust Company. Subsequently, EtherFlyer listed GUSD and opened the trading area. This is the first decentralized transaction of legal tender, which is a landmark event.
Decentralized exchanges are the best choice for transactions that guarantee security and privacy because of their distributed and KYC-free. However, since the invention of legal tender, it has been a centralized currency. Except for private cash transactions, most of the legal tender transactions occur within the centralized system. Before EtherFlyer listed GUSD, it was hard to imagine how the legal tender would be transacted decentralized. but the decentralized exchange EtherFlyer achieved a breakthrough, which brought out a very interesting creation: centralized legal tender decentralized transactions became true.
Unique legal tender decentralized transaction
Decentralized transactions of legal tender also occur frequently in life, such as holding cash to buy food, peer-to-peer transactions, and not going through the center. However, such as this form is basically open, that means it is difficult for both parties to guarantee privacy, that is, both parties must meet, even if it is difficult to guarantee privacy through intermediaries, there will always be information exposed. Moreover, such as this decentralized transactions of legal tender are mostly small, and large amounts of money will be very laborious, and problems such as safety, transportation, and storage need to be considered.
However, after EtherFlyer listed GUSD, there was an unprecedented de-centralized transaction of the legal tender, which truly realized the decentralized transaction of the legal tender, which was safe, private and compliant. Why is it unprecedented? This requires two conditions: 1. True decentralized transactions, security and privacy; 2. Digital legal tender recognized by sovereign states to ensure compliance with decentralized circulation. No decentralization of legal tender transactions can occur without any satisfaction. Therefore, USDT, bitCNY, etc. are not counted because they are not recognized by the sovereign state; GUSD is not special that list on other exchanges. The centralized exchange is still a centralized transaction, which requires KYC and fund management.
Without the second, EtherFlyer list GUSD has a significant and special significance. It truly realizes the decentralized transaction of legal tender (digital asset form), complete privacy, security, compliance, and meets all the conditions for large-scale transactions. The major changes in the monetary system predicted by Yuval Hulari may have begun, and the complexity of this financial state will begin to enter a new height. The decentralized trading of digital legal tender is a landmark event.
The far-reaching effect may not limited to the financial area
With EtherFlyer launching the era of decentralized transactions in legal tender, it is not just finance, it will have a profound impact on trade, taxation and even politics. The inherent structure relies on a centralized legal tender system, although the it is a centralized sovereign currency, but the development of the blockchain is enough to realize its decentralized trading. GUSD may be just the beginning.
Based on decentralized transactions, future value circulations are likely to no longer require national legal tender or even any currency. There are indications that this has become a reality in some small countries, economically unstable regions, or countries with high inflation. For example, countries such as Syria, Ukraine, and Venezuela have large demand for bitcoin or US dollars. The analysis shows that the people tend to choose the US dollar that is endorsed by sovereign countries, but this is subject to strict foreign exchange control by the state. The GUSD’s decentralized transaction will make this demand easier to satisfy, the transaction can be in the country but not based on domestic legal tender, and such transactions are safe, private, and compliant.
It is conceivable that this will have a profound impact on the centralization mechanism, such as taxation. Under the existing centralized trading, information is stored centrally and centralizedly cleared; but decentralized transactions are different, the existing mechanism is difficult to grasp the transaction data, the path or the party, and even the transaction happening is not known. This may require new tax reforms. Perhaps the state will no longer tax to the legal tender, but tax to the information or data. For example, in the case of decentralized legal tender transactions, the transaction will occur based on the execution of smart contracts, which occur in two companies that are not known to each other.
The new era of decentralized legal tender has been launched
Decentralized legal tender transactions provide greater security, privacy, and compliance, which will make transactions more frequent, active, and unknowable. This will bring a trend and the transaction becomes the only fact. There are multiple versions of the “truth” that people agree with, but there is only one ledger.
After EtherFlyer launched the decentralized legal tender transaction, the social system will be more unified, and the world will rely on several sovereign legal tender to operate efficiently. The transaction will be more concentrated, the group consciousness will be strengthened, the financial synergy will be highly integrated, and the era of legal tender free transaction will come soon. The trend is difficult to reverse, and it is better to embrace it than to wait and watch. In EtherFlyer, feel the decentralized legal tender transaction, which will have a deeper understanding of this new era and gain development opportunities in the future.
Trading website: etherflyer.com
Telegram group: t.me/EtherFlyer
EtherFlyer is a decentralized crypto Exchange, which dedicates to build a secured, solid and high efficiency platform for the users all over the world. Users who hold the platform token TCASH can share 50% of the platform’s profit and gradient discounts for transaction fees of their own!