Having already been tested in the Everex Remittance Pilot, cash on the blockchain is on the cusp of changing the way the world interacts with fiat currency. Many analysts have long-predicted the end of cash, and a new age of “digital cash.” Everex has set out to make this a reality thanks to Ethereum and blockchain technology, as well as our pioneering work on stablecoins.

Everex’s cash on the blockchain, made possible with ERC20 Token Standard-based smart contracts, leverages Ethereum for our cryptographic versions of digital currencies; for instance USDEX or THBEX.

Balances of “cryptoUSD” or “cryptoBaht” have been designed to be underwritten by physical balances in accounts at financial entities and trusted third-party cash custodians, who will also handle all know your customer and anti-money laundering responsibilities. Cash on the blockchain allows paper fiat money to be digitized at a local bank branch or currency exchange, and potentially transferred via the Everex framework in a peer-to-peer fashion with mobile phones or online browsers. Third party ERC20 Standard Wallets will be able to integrate cash on the blockchain-based transactions.

In our initial stages, and partially for security purposes, Everex will reserve control over token contracts, while machine learning technology charts Member behavior. Our vision is to hand token contract control to some delegated third-party, such as public entities or regulatory bodies.

The idea for cash on the blockchain is based on Austrian economist F.A. Hayek’s stated notion that a successful privately issued money, in competition with paper currencies, would be the one which demonstrated the most stability. The search for a stable cryptocurrency is in an early stage, but Everex is a pioneer in the research and development of such a technology.

Technologists claim that a stable value — for instance, $1 per each crypto-unit as is the case with cryptoUSD — would be a boon to cryptocurrency adoption by minimizing the stresses that come with a fluctuating store of value/transaction medium. A stablecoin theoretically represents a stable means of payment and trade, making it appealing for daily use.

Stablecoins are based on the notion that lower purchasing power volatility will lead to increased demand. While bitcoin’s volatility has decreased over time, it, Ethereum and other public blockchains are known for displaying a considerable amount of price fluctuations.

Stablecoins must have flexible supplies by tracking demand for itself and increasing or decreasing supply, a function managed by EVX-holding Members in the Everex protocol.

Nowhere else has an international network of financial institutions and others been combined with the power of smart contracts. Indeed, Everex is already working with banks and has enjoyed increasing interest from FX brokerages, money transfer organizations (MTOs) and others about underwriting and issuing cash on the blockchain.

We believe that by pegging crypto-currency to physical fiat currency reserves, we can make blockchain cash — and all related benefits — a reality.

Want to learn more about Everex? Be sure to visit our website, Everex.io, today.