News!: Opus Technologies Launches FinGeniusAI Solutions – An Open Innovation Platform for Building Future-Ready Solutions.. Know More
News!: Opus Technologies Launches FinGeniusAI Solutions – An Open Innovation Platform for Building Future-Ready Solutions.. Know More

Crypto, Stable Coins, CBDCs

Delivering Next Gen Payments with Cryptos, Stable Coins, CBDCs

With the increasing demand for cryptocurrencies, tokenization, and remittance, businesses need reliable and secure ways to store and transfer their digital assets. Opus provides a solution by enabling businesses to create their own crypto wallets that are integrated with the blockchain of their choice.

Bitcoin Image to represent cryptocurrency concept

Use Case 1: Cryptocurrencies

The proliferation in the launch and use of cryptocurrencies and the need for decentralized, trustless, and fast cross-border payments has brought forth the need for secure transaction and storage mechanisms. Opus helps businesses launch their crypto wallets integrated with their chosen blockchain to facilitate secure transaction and storage facilities.

Problem Statement

Enable cryptographically secured digital payments on blockchain networks

Challenges

  • Instability in cryptocurrency valuations leads to investment and trading inefficiencies
  • Dynamic and diverse compliance requirements across legislation
  • Ensure multi-factor security of digital wallets without compromising accessibility for the owner
  • Poor scalability, high energy consumption, and network gridlock slow transaction confirmations

Solution

  • Developing secure and reliable wallets to store, send, and receive cryptocurrencies
  • Allowing multi-currency support, automatic transaction processing, and integration with other cryptocurrency services
  • Carefully develop, and verify smart contracts for required blockchain applications
  • Offering a platform to seamlessly integrate the wallet with an existing blockchain

Use Case 2: Stable coins

A stable coin is a type of cryptocurrency that links its value to another asset, such as a currency or a commodity, to keep it stable. While intermediary-free peer-to-peer payments are increasingly becoming a necessity, the volatility of cryptocurrencies makes enthusiasts apprehensive. The backing of a reserve asset makes stable cryptocurrencies aka stable coins an attractive choice and an alternative to high-volatility digital coins. Opus facilitates the design and development of stable coin-related platforms and payment mechanisms.

Problem Statement

Facilitate secure and regulated remittance with stable coin

Challenges

  • Risk of censorship and loss of value if the centralized system is compromised
  • Legal and compliance challenges for issuing stable coins pegged to fiat currencies
  • Limited usefulness due to lack of adoption
  • Market volatility of the fiat currency can affect the value of the stable coin

Solution

  • Facilitating merchants to accept stable coin payments and their conversion to fiat currency for further processing via their banks
  • Integrating payment gateways for eCommerce platforms to enable friction-free payment in stable coins
  • Developing smart platforms for the issuance and maintenance of stable coins
  • Ensuring the integration of stable coin platforms with other blockchain-based services

Use Case 3: CBDCs (Central Bank Digital Currency)

As governments worldwide are catching the wind of the cryptocurrency revolution, they are planning to launch centrally issued, circulated, and monitored digital currencies equivalent to fiat currency. This new ‘regulated’ digital crypto will be used as CBDC. Smart contracts form an integral part of decentralized, trustless transactions of CBDC money. Opus offers smart contract implementation services to facilitate merchants to digitize their operations.

Problem Statement

Develop and implement smart contracts for automated and secure transactions in digital currencies

Challenges

  • Lack of technical expertise and infrastructure to facilitate secure and reliable transactions at scale
  • High vulnerability to cyberattacks due to centralized issuance and control
  • Non-specialization in ensuring seamless integration with existing payment systems and standards
  • Ensuring financial stability and compliance with existing regulatory standards despite digitization

Solution

  • Designing and developing CBDC smart contracts for automated and secure transactions

Recommended Resources To Explore

Frequently asked questions

While CBDCs belong to the same family as cryptocurrencies, their underlying idea of minting and adding to circulation is very different. Although Ethereum is considered the most evolved blockchain to support a CBDC, there is no clarity regarding how and on which technology will CBDCs be developed. The mechanism to calculate the CBDC coin price is still under deliberation.

Stable coins have been in use for some time now and have a reserve asset ( a fiat currency or a commodity) to peg their value to the asset. Central bank digital currencies are similar to fiat (regular) currency, the only difference being that they are digital. While CBDCs require the imprimatur of the issuing government, crypto-stable coins rely on the assets stored.

The stability of a stable coin is evaluated by how infrequently its value moves relative to that of the reference asset. As of August 29, 2023, Tether is the most stable coin, followed by Venus USDT and TrueUSD.

CBDCs are not aimed to replace stable coins, fiat may be, but in the distant future.

CBDCs aim to streamline the use of digital currencies in a controlled manner whereas stable coins offer peer-to-peer permission-less alternatives to digital money. Due to the fundamental difference in their functionalities, the two can coexist seamlessly.