A new stable cryptocurrency has been launched to bring decentralized regulation and stability to the blockchain. The ARC Reserve Currency will track the most stable fiat currencies and real-world assets. ARC is founded by global crypto expert and University of Cambridge Research Fellow, Dr. Garrick Hillman. An ICO was launched on 14 December for ARC, managed by a not-for-profit SPV (special purpose vehicle).
The ARC ICO opens today, targeting an initial raise of up to $5M.
With the value of bitcoin at an all-time high and as volatile as ever, ARC Reserve Currency is bitcoin’s Alka Seltzer. ARC is less volatile than other utility tokens (such as bitcoin), growing with inflation over the long term, supported by traditionally stable assets such as loans and national currencies. As a token part of the Ethereum blockchain, ARC is a stable alternative for investors and will be freely tradable, either through exchanges or directly peer-to-peer.
Proceeds from the sale of newly minted ARC coins will be placed into a ring-fenced, not-for-profit company – ARC Fiduciary Ltd – which is regulated in Jersey by the Jersey Financial Services Commission (JSFC). The proceeds are then held in cash reserves and invested into fixed income opportunities (such as US Treasury bonds, British gilts, real estate loans, etc.) to retain value for the holders of ARC coins.
The need for a stablecoin is the missing piece in the world of cryptocurrencies, as even highlighted by Ethereum’s creator, Vitalik Buterin, in his post: “The Search for a Stable Cryptocurrency.” Unlike the Tether stablecoin, which is as stable as the US dollar and still subject to socio-economic factors and inflation, ARC will be backed by assets and track the rate of inflation across currencies of the G10 countries and those that are at the top of the Bank of International Settlements trade weighting analysis, such as the USD.
ARC has in-built protections against under and over-valuation to maintain a stable and resilient price, keeping the currency stable in real terms.
Dr. Garrick Hileman commented on the ARC launch:
“Many view the advent of a successful stablecoin as a potential tipping point to broader cryptocurrency adoption. The popularity of cryptocurrencies has sky-rocketed recently, yet the impact of bad actors and speculators has created a Wild West-type environment. The ARC stablecoin can complement existing digital assets and represents an important addition to the cryptocurrency ecosystem, facilitating new uses for cryptocurrency and related technologies, such as smart contracts.”
ARC was also co-founded by former Fidelity executive and CEO of BondMason, Stephen Findlay:
“Working closely with the Jersey Regulator and Jersey Government, ARC is the first regulated crypto-currency of its kind, and the first ICO out of Jersey. This is a new era for the crypto-ecosystem, and regulated cryptocurrencies – or crypto-securities – are likely to be a significant area of future growth for the cryptocurrency ecosystem.”
“This aspect of ARC is very important to us. While it may seem an extreme example, imagine you’re working as a teacher in an unstable country such as Venezuela: if you have any savings at the end of the month, high inflation will destroy the value of these savings, or worse still, the bank holding your savings could collapse. A stable cryptocurrency such as ARC can be used as a store of value for savings – protecting ARC coin holders from local inflation and staying out of the local banking system. We are excited about the positive impact the ARC stablecoin can have on the crypto-ecosystem, and society in general.”
Beyond its attraction as a direct solution for the volatility of cryptocurrencies, ARC also has the wider potential for positive social impact across the globe. There are over 2 billion people living in countries with high inflation or material instability in their financial and political systems. As a result, many people see their savings become less valuable over time; a direct result of matters outside of their control. The ARC coin can empower individuals to save and plan for their futures – insulating themselves from local inflation and economic uncertainty.
The development work behind the project is fully completed – as soon as the ICO closes, ARC coins will come into existence and be widely tradable amongst coin holders.
The ARC whitepaper is available with more information and details on the project.