Henrik Sorensen discusses e-Money’s European currency stablecoins

0:01i'm ashton addison from event chain for investmentpitch media in the crypto coin show and today on blockchain interviews with henrik sorensen the cto of e-money henrik welcome to the show thanks for taking the time to be here today thank you for having me on the show yeah i'd love to learn a little bit more about e-money i've been researching into your platform

0:20and you're adding a twist to the defy ecosystem and stablecoins and some really interesting assets that you've created and i would love for you to kick it off for the viewers with just a high level overview of what is emoney and then we can dive into those details yeah thanks uh thanks for the nice comments um what we're trying to do is we will provide we're providing

0:42staple coins which is in itself not super original but we have added a few twists that make them very attractive we believe to the d5 ecosystem and the blockchain system in general so our our blocked our stable coins are based on the number of european currencies at the moment it's the euro and the swiss franc and some of the scandinavian currencies

1:07we have we are fully compliant with the regulatory environment in europe at the moment and we have we have managed to convince one of the big four auditing firms to provide the regular proof of funds so that that sets us apart from a number of the other staple coins we believe on top of that we're building on on a on a technology that allows us to future proof the payment services so you

1:38could say that we're kind of envisioning a future where people pay with the staple coins without really realizing there's a blockchain hiding in the background they're just transferring value and the way we've done this is to make sure that the the chain is very fast and can can basically finalize the transaction in about half a second wow well that's a

1:59great intro thank you very much for that and i'm interested to hear more on all of those aspects first of all with the emoney stablecoin backing it by european currencies there are many different collateralized algorithmic stable coins that are popping up and you know tether's supposed to be backed by american dollars who knows if it's fully backed by it but

2:19to back it by a basket of european currencies is interesting do you think that that's a strong uh way to be able to back stable coins on the blockchain yeah it's it's actually not so much as a basket of currencies as it is a number of individual stable coins each one backed by a single currency okay um it's um it's it's a in regarding the backing it's a slightly

2:47dull it's actually just backed by simple bank deposits and once our bank starts thinking this uh the deposits that go too high we'll be adding some some government bonds and some very secure assets in the same same currency to to to the to the reserve account so in that way it's incredibly incredibly boring almost but also very secure

3:15the idea is to create something exceptionally stable that the people can predict the value of uh in the future definitely and with moving those stable coins into the d5 decentralized finance ecosystem what are some of the advantages on these types of assets as opposed to using other digital assets in d5 it's um the main the main

3:46the main advantage is having a predictable store value essentially so in a in one of the local currencies we've had um we've actually we've talked to some of the institutional uh people who are very excited about having a euro-based stablecoin because they are a little bit afraid of some of the regulatory complications regarding having us dollar staple coins

4:08which they see as a little bit unpredictable so that's that that would be the main advantage that's great and i was reading into the technology behind these stable coins and i saw that you partnered with tendermint and cosmos blockchain and we did have cosmos team on our show recently talking about their inner blockchain communication protocol that they've come out with and it seems

4:34like their technology is pretty well developed can you talk about the technology underlying the stablecoins and why you're going with this type of technology yeah it's a it's true we're we're building on the tendermint and the cosmos sdk technology which we're incredibly happy with we started out three years ago and picked that technology due to the vision they

4:57had of a proof of stake instant finality and also the inter blockchain communication that they released recently we we believe that the future in large parts lies in in connecting disparate blockchains and and exchanging tokens and value across blockchains we see that as a very interesting prospect where an ecosystem can develop and and projects can use each other's tokens

5:24in in ways that it could be hard to predict once you when you set up your own project it's also it's also the center mini cosmos stack that has enabled us to build this uh very fast transaction finalization thing i started i talked about in the beginning where we where we essentially create a block as soon as a transaction is available which which means that transfers can usually

5:48be achieved in like half a second wow that's what's needed in the industry because right now it's a little slow and expensive on the ethereum defy ecosystem now building on cosmos are you still able to connect to the the network effect of the ethereum defy ecosystem and other future protocols that are running d5 uh through through this multi-blockchain

6:13uh you know connection yes yes we are that's a very good question we actually very recently launched our bridge to ethereum so our tokens are now also available as ec20 tokens and while it's true that the ethereum is kind of congested and incredibly expensive to to do anything on it's also where things are happening at the moment so it's not something that we

6:37want or can't ignore um so so we prioritized building that bridge recently and what we're working on now is upgrading the blockchain software to so we can also connect to the cosmos hub using the ibc technology that we've been been looking very much forward to while we've been working on this definitely i think it's very smart to be moving to the ethereum ecosystem

7:02despite any uh issues that it has just because that's just where the majority of d5 is going on right now and you mentioned you're moving your token over there i want to talk about the e-money ngm token and just in terms of the platform overall the functionality and how it's used for the participants and it does it create a sustainable ecosystem for e-money with ngm

7:28yeah ngm is token our chain is a proof of stake so we need so on a technical level it's used to to secure that the proof of stake works and that no the chain is very difficult to attack um we have added the functionality that let me start another place our tokens which i haven't mentioned earlier our stablecoin tokens are actually interest-bearing so they will be

7:53they will have an interest that resembles the interest that is of the underlying currency okay so this has allowed us to create a model where we much like a traditional bank we add a markup of interest on the on the staple coins this this markup is then used to purchase and burn in gem tokens so so our platform our model on its own creates a purchase pressure on the ngm token in

8:21essence this means that the larger the size of the of the staple coin issuance will will have an impact on the buy this buyback mechanism and ensure that the buyback pressure will increase so you could say that the the intrinsic value of the ngm token will increase with the with the issuance this means that our token can also be used for creating an ecosystem we can

8:47we will set aside a pool of ngm tokens for encouraging partnerships and and incentivizing um exchanges and and other projects if if you find a good synergy somewhere so i i don't know if we're the only ones but i mean i think there are not very many stablecoin projects where they make it possible to share the the income so to say in tokenized in a

9:15tokenized manner not the asset-backed staple coins at least definitely yeah no i think that's really great and i think for people to understand clear one of the ways that you're saying is that by staking stable coins in d5 in certain protocols you're also able to interact and get the ngm token where at least it helps the cycle of the token move through the ecosystem yeah yeah we

9:39are we're working on models for for example incentivizing liquidity providers to provide liquidity and being rewarded also in ngm so things like that are on the table right now um do you guys have multiple st like how many stablecoin at different assets do you have within e-money and are you is that the final or are you expanding out in the types of stable

10:03coins and other tokens that you're creating right now we have five we have the we have the euro and the swiss franc and then the danish norwegian and swedish chrono we we want to expand it's it's it's not currently it's not a priority but in the longer term we want to expand to to more currencies it could also depend on finding finding the right partner that can

10:27deliver the services that we provide but maybe for for example some of the asian currencies but it requires that we have the resources to look into the regulatory aspects in in other countries so at the moment what we're trying to achieve is uh gaining adoption for the stable kind definitely and i was going to ask you about that with the five assets that you have right

10:50now are you incentivizing adoption to use these types of assets in the dfi ecosystem through the ngm rewards are there other incentivizations or all are you also expecting just organic growth of the platform we're talking to some specific partners about adopting the staple coins and using them we'll be making we'll be adding more generic functionality for

11:17for example liquidity pools uh that people can can can join and then gain in german rewards and we could also with the right project of the right partners we could provide a bag of ng for for them to to adopt it so that that's our primary focus right now is gaining the initial adoption for for these stable points and we're actually talking to some fairly

11:43interesting people regarding that that's great henrik and it sounds like you have a couple different things that you have in the works right now um you know potentially expanding the currencies the platform for your roadmap in the next six months throughout the summer of 2021 what are the main focuses or are you trying to bring out any major developments

12:03to the to the platform uh you know in the near future yeah we want to we want to bridge more networks right now we bridge the ethereum and we want to we're looking into bridging to avalanche we're breaking we'll bridge cosmos up we look into bridging to finance chain in addition to that we what we need for for stable coins to make sense we need to have ways for

12:27people to obtain them and get rid of them so to say like exchange them back to something else so we'll be looking into on and off ramps for that there'll be crypto on and off ramps for in the form of liquidity providers and we're also looking to onboard the credit card payment service as well in in the near future definitely and for people that are interested in starting

12:55to experiment with the stable coins on emoney ngm do they get it off a primary market or is it available on any markets and what's the easiest way for them to get involved right now the easiest way to get the obtaining gem token is to either get it on syntax the former exchange formula known as bit max or simply go to the uniswap pool we've created for trading them

13:20we will be looking into creating pools for the stable coins as well but we are actually waiting for uniswep version 3 because that has functionality that is especially well suited for staple coins so we hopefully yeah we'll take advantage of that for for for creating liquidity pools for for the stable coins very good to know and i'm excited for unit swap version three as well so

13:44uh i love to follow along yeah with emoney as that plays out um and for the viewers that want to just learn more about your updates when they're coming out get involved with the the community what's the best way for them to get involved they can they can go to our website which is emoji.com it's very easy to remember we have some telegram channels with the

14:06announcements and we also have a general telegram channel for asking questions and chatting um and there's obviously also our twitter account which brings all the news definitely okay well i will leave all of those links in the description box below as well thank you so much for taking the time henrik to speak about e-money and all of the interesting stable coins and assets that

14:26you're working on in this platform all the best uh with the updates and let's follow up in the near future yeah definitely and thank you for having me on the show you