• Sun. Aug 14th, 2022

UK-backed Millicent tests world’s first full-reserve digital currency

ByHazel R. Lang

Jul 15, 2022

Innovate UK, part of UK Research and Innovation, has audited the world’s first test of a full-reserve digital currency (FRDC) developed by blockchain startup Millicent.

Essentially, Millicent developed the technology that synchronizes the benefits of privately issued stablecoins and CBDCs. However, the company prefers the term full-reserve digital currency to differentiate its offering from central bank-issued digital currencies, as well as other types of “stable coins” that have proven to be anything but stable.

Acting as a sort of safe haven where consumers can park their assets in volatile markets, Millicent’s FRDCs are consumer-issued digital currencies pegged to traditional fiat currency. The company uses a regulated third party to ensure that its coins are always 100% backed by liquid “cash” deposits held in bank accounts, directly at the central bank.

Millicent’s FRDC seeks to break down existing barriers in the global financial system. Ultimately, the goal is to improve efficiency by reducing transaction cost and increasing transaction speed.

For example, Millicent’s network will be able to facilitate over 10,000 transactions per second, 5 times the VISA network average, with sub-second settlement and negligible power consumption. With one-thousandth-of-a-cent transaction fees, cross-border compliance, and accessible user services with on- and off-chain utilities, Millicent says it is paving the way for true financial inclusion.

“[Millicent] fixes major shortcomings in the payments industry, both traditional and crypto. said the evaluators from Innovate UK, adding: “To provide a digital wallet and payment app accessible via iOS/Android apps, with an API for integration with existing web/mobile platforms as part of this project is brave and ambitious.

“We are extremely proud to have presented this world-first solution to Innovate UK, especially during such a turbulent time for the crypto markets. Recent issues with popular cryptocurrency platforms underscore the importance of projects like Millicent, which focus on security, stability, and real-world benefits. said Millicent CEO Stella Dyer.

Millicent’s new coin demonstrated various use cases including micropayments such as £0.15 to access a paid newspaper article, using a QR code to tip a busker of £1, as well as higher value peer-to-peer payments.

Co-funded by the UK government, Millicent is a regulator-friendly distributed network designed to trigger global mass adoption of digital finance. Its CEO and co-founder, Stella Dyer, is a Wall Street veteran with years of experience in leadership roles at Morgan Stanley, JP Morgan and managing the global high-tech investment banking unit of Goldman Sachs.

Millicent also bridges enterprise and public blockchains, as well as traditional financial systems, supporting CBDCs and stablecoins, institutional access to DeFi, fiat on and off, tokenized assets , etc.

Earlier in March, the company secured government funding in the form of a UK Research and Innovation (UKRI) Innovate UK Smart Award. The grant is intended to fuel the development of blockchain-based solutions for a number of use cases and also to aid the country’s efforts to launch a central bank digital currency.

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