Cosmos Cash, the new research project launched by Tendermint
By Inkarias - 2020-12-17
Tendermint Engineering recently shared the announcement of the launch of Cosmos Cash, an innovative new research project funded by the Interchain Foundation with the main objectives to bring liquidity to the Cosmos ecosystem while offering tools for developers and licensed users to create their own digital token. In a simple way, this project is integrated within a Cosmos SDK based, regulatory compliant finance protocol with the ability to host digital currencies or tokens that are backed by a real fiat currency at the same time. These operations are launched to highlight the various issues and impacts of the new European regulation, named MiCa (Regulation of The European Parliament And of The Council on Markets in Crypto-assets, and amending Directive (EU) 2019/1937) for investors and projects carrying out financial activity in the decentralized world of blockchain.
As specified of the official Tendermint’s blog:
The result of this research constitutes the foundation of the first proof-of-concept of Cosmos Cash that we have built on top of Cosmos SDK and is secured using a Proof Of Authority consensus algorithm. The goal of the application is to re-define how an electronic money institution works by leveraging both the Cosmos SDK and Tendermint Consensus Algorithm.
Cosmos Cash tokenomics and future plans
As stated in the introduction, Cosmos Cash is a crypto-asset pegged to one fiat currency. Despite the stable value associated with this currency, it can’t be considered as a stablecoin like USDT/USDC or other currencies in the market. In that way, Cosmos Cash must be considered as « an electronic surrogate for coins and banknotes and used for issuing payments. »
During the next years , Tendermint will be continuing the development and integration of technical features into the project and should release a MVP around 2022 and right before MiCa legislation get force-applied across the continent
More information about Cosmos cash at https://tendermint.com/