The walled garden of traditional financial institutions seems to be opening doors to blockchain initiatives more and more often. Accounting trailblazer PricewaterhouseCoopers, the world’s second-largest accounting services firm, has announced collaboration with cryptocurrency-backed lending startup Cred, formerly Libra Credit, to develop a brand new dollar-backed stablecoin aimed to “usher in the next 100M users of crypto assets.”, as stated in the company’s press release on Oct. 8.
The main goal of collaboration is to use PwC resources and expertise to provide “100% transparency and value substantiation”. The company expects that this move will increase trust and confidence in the crypto ecosystem.
Grainne McNamara, PwC’s Blockchain and Cryptocurrency head, stated:
“We are eager to leverage our proven industry experience to support a quickly developing asset class and its associated market infrastructure components. We believe this exploration of the blockchain infrastructure and associated operational frameworks can help the industry develop an increased level of comfort.”
Between the lines of press release, one can read disenchantment with Tether USDT, the most popular stablecoin on the market. Despite the leading position and dominant market volume, the public opinion has repeatedly shown concern with it’s solvency problems, exchange vulnerabilities and price manipulation allegations (as with almost any other cryptoasset, though). Problems inherent to any other cryptocurrency are, however, less forgivable when stablecoins are the subject.
Considering all these issues, PwC sees it’s place in crypto ecosystem by bringing “a more transparent set of reserve functions, stablecoins and deposit and yield products” to the market. That’s where Cred, the brainchild of former PayPal executives Lu Hua and Dan Schatt, enters the stage, which will probably take a much more regulated approach to bookkeeping.
Schatt, Cred co-founder, and President, reflected on PwC’s involvement in the project:
“PwC’s commitment to the crypto community at large sends a very strong message to retail investors, mainstream financial services providers and the crypto enthusiasts that the world is moving toward decentralization, transparency and accountability in a system that will evolve beyond the need for trusted intermediaries.”
No doubt, PwC’s involvement will generate some buzz on the crypto market and especially the breed of other USD-backed stablecoin projects. Conisdering the rise of fully regulated Gemini dollar and Paxos Standard, it looks like corporations are entering the battle to create a universal worldwide cryptocurenncy.