Paysend Group, a Fintech company based in the UK, announced that it is launching a new global digital currency, Pays XDR.
This stable coin is 100% backed by cash reserves and the reserves are matched in the exact proportion of the International Monetary Fund’s Special Drawing Rights (“XDR”).
The XDR is the currency used by the IMF to settle transactions between member states at central bank level. It is a basket of 5 currencies (USD, GBP, EUR, JPY, CNY). It is not traded as a separate currency.
Paysend has used the IMF’s model for a basket currency to create the Pays XDR as a tradeable digital currency. In addition, by ensuring that the currency is backed 100% by cash reserves, and instantly tradeable into cash, it ensures the value of the currency will always match the cash reserves.
Ronald Millar, CEO at Paysend, commented: “The launch of Pays XDR to our customer base is the next step in our journey to create money for the future. Pays XDR can be transmitted instantly globally for free and used or converted to cash at any time. This is a digital currency that the consumer market can trust. Our next phase will be to make Pays XDR available to our business customers so that they too can transfer money and pay cross border bills as simply and quickly as sending a text.”
The currency will be available for Paysend’s customers via its Global Account and in a specific Pays XDR wallet. The reserves supporting the currency will be independently audited and openly published.
Tom Zschach, an Advisory Board member of Paysend and CIO at CLS, said: “Stable coins are another mega trend that have the potential to disrupt the retail payment industry. By combining an innovative solution for transfer time (instant), cost (free) and stability (fully collateralised basket of currencies), Pays XDR is paving the way for wider acceptance and adoption of programmable money.”