Bitfinex entered into partnership with a token backed fiat currency system, dubbed Tether.
Bitfinex bitcoin exchange, based in the U.S., has announced the integration of Tether, a fiat currency platform based on the blockchain technology.
The system, which is currently available in beta version, allows using fiat currency on the blockchain in the form of token, called Tether. The use of Tethers reduces volatility risks and concerns of those who are not familiar with bitcoin. Tether enables users to make purchases online, store and withdraw funds from their accounts without banks or other third party participation.
In November 2014, previously known as Realcoin, the company was rebranded as Tether in order to avoid associations with altcoins.
The system allows making conversions to only three currencies, which include USD, EUR, JPY. The conversions are realized at almost zero fees. Moreover, sending Tether tokens or bitcoin to other Tether wallets implies no fees and is completely free.
Tether maintains 1-to-1 ration with every type of currency, for instance 1 US dollar is equal to 1 Tether, what eliminates the risks of exchange rates volatility. In terms of security, the platform complies with strict security and government regulations.
“We see Tether as a significant optimization for the problems that plague Bitcoin traders and exchanges when interfacing with the traditional banking system… We proudly support Tether and encourage other exchanges, OTC traders, and arbitrageurs to also use Tether. We believe that widespread adoption of a secure Blockchain-compatible ‘crypto-dollar’ will lead to better price discovery, market transparency and liquidity,” said a spokesman from Bitfinex.
Bitfinex CEO and co-founder Reeve Collins said: “This integration with Bitfinex is the first step into a world where traditional currencies move like bitcoins. Dollars have now inherited the portability benefits of cryptocurrency.”
Another co-founder Craig Sellars, who also serves as an CTO at the company, commented: “We built Tether as a non-competitive technology platform to enhance the features of all Blockchain companies by focusing on one premise – to provide access to fiat currency on the Blockchain. A simple integration with Tether enables a new foundational layer on Bitcoin and offers a powerful utility for everyone in the ecosystem.”
Tether, the Hong Kong and the Isle of Man-based company, was formed by Sellars, Collins and Brock Pierce, who also co-founded KnCMiner.cn, Robocoin Asia, ExpressCoin, CoinDaily and GoCoin. The platform is in partnership with bitcoin kiosks network ZenBox, international payment platform GoCoin and bitcoin wallet providers Expresscoin, Omniwallet and HolyTransaction.
To private beta of Tether can be requested at www.tether.to.
Polina is an undergraduate student at Belarusian State Economic University (BSEU) where she is studying at the faculty of International Business Communication for a degree specializing in Intercultural Communication. In her spare time she enjoys drawing, music and travelling.