The role of cryptocurrencies and its underlying blockchain technology can hardly be overestimated. During 2017, the world has witnessed the process of its gaining popularity and mass acceptance as quickly as no other technology has ever had. But the more users cryptocurrencies attract, the higher is the necessity in some interchange mechanism between traditional currencies and these new digital counterparts.
The A-SDR represents an attempt to create a decentralized currency standard for the cryptocurrency ecosystem. The main purpose is to design a system, which would effectively facilitate a remittance and settlement scheme for digital currencies working on a globular level.
The idea was born from a solution that the IMF once proposed in 2011 to combat the struggles that world economies had been facing since the great recession of 2008. The solution was found in a new currency standard, dubbed the ‘SDR,’ which was intended to replace the dollar as the reserve currency of the world.
ACChain is the project behind the A-SDR digital currency basket, which itself is a blockchain-based platform allowing users to exchange and settle purchases with digital currencies. This means ACChain allows people to trade cryptos for real assets and vice versa, or to exchange cryptos for other cryptos, and even digital currencies to fiat.
The ‘A-SDR’ (an abbreviation for ACChain Special Drawing Rights and ACChain’s reconception of the original IMF’s SDR) is intended to provide some stability to the ACChain platform by creating a basket of currencies that fosters asset digitization.
The basket of currencies will include Bitcoin, Ethereum, and ACCoin. Among the three digital currencies, Bitcoin and Ethereum are arguably the two most widely recognized cryptocurrencies now. The third, however, is a little more obscure as the native token of the ACChain platform.
ACCoin, the token that fuels the ACChain, is meant to be the standard token of global circulation for the A-SDR digital currency basket, and will ultimately be the standard way to settle digital currency purchases everywhere if everything goes as planned.
By “anchoring” BTC and ETH – which the developers behind ACChain see as a digital gold reserve – ACC creates a brand-new remittance and settlement system for global digital currencies.
The goal is to make A-SDR become a “true bridge to the traditional fiat system” for digital currency markets by creating an exchange rate index with the basket of currencies selected. In such a way, it will establish a standard value that defines the exchange rate between fiats and cryptos through linked traditional (“fiat”) financial digital tokens.
Over 100 banks worldwide already launched and utilized a digital asset Exchange & Settlement system, showing that the idea has some practical appeal that has manifested itself directly in the real world.