The XOV Stable digital currency offers functionality that no other digital stable currency can – by holding XSTA (XOV Stable), the ability to cash out to underlying assets is possible including currency. This provides the absolute protection that the XOV Stable currency itself has underlying value in relation to a fractional reserve.
No other stable digital currency does this. If Tether fails, the underlying dollars are trapped. If the Tether network fails, the underyling dollars are trapped.
Why this is important
1. In the unlikely event of a complete FIAT crash scenario, access to currency will be impossible as ATMs and withdrawals will not function. Access to non-equities being held as part of the XOV reserve will be accessible.
2. In the unlikely event that the XOV Core suffers a catastrophic failure due to electromagnetic interference, or electricity grid failure, or other failure outside the control of XOV, a record of the XOV Stable currency held by account will be used to convert the digital currency into underlying assets.
Unlike Tether and other stable currency networks, our underlying assets can be audited real-time. The underlying assets will be tokenised to give the totality of the reserve. Each token will relate to a series of contracts held in relation to the underlying assets.
What are the reserves?
The reserves cannot be decided at any given moment in advance. XOV will be creating an independent non-profit making organisation domiciled in Switzerland to hold the reserves in escrow. These reserves will be controlled by a Board comprising of economists and financial risk experts, underpinned by a team of experienced traders. The Board will operate within a transparent infrastructure and adhere to a framework that minimises financial risks and capitalises on the diversity of reserve assets available. This also has to interact with the most optimal price stability within a 5% tolerance.
DISTRIBUTION OF RESERVES (MAY 2019)
Data not yet recorded.
- Government bonds