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XSY Accelerates Economic Value

Published 29.2.2024

Input Output Global (IOG) has unveiled a new initiative known as XSY, pronounced 'eksy'. The specifics of this project, shrouded in a veil of marketing terminology, are challenging to decipher. Despite the abundance of promotional jargon, it appears that the project will involve the creation of a new stablecoin.

A New Stablecoin

The project was announced in October 2023 with the appointment of W. Sean Ford as CEO and David Markley as COO. Both Ford and Markley have joined IOG to lead a new venture focused on the stablecoin space.

David Markley's career history is interesting.

He is a multifaceted product and operations leader. At Algorand, he led the Operations, Venture, and Business Solutions teams. He was also involved in Algorand's project to build the world's first national digital currency, the Marshallese sovereign.

The Marshallese Sovereign (SOV) is the world's first national digital currency. It was introduced by the Republic of the Marshall Islands in 2018. The SOV is not just a representation of the local fiat currency, but rather an independent coin.

Algorand was chosen as the technology partner for this project.

Algorand's protocol was implemented to provide the SOV initiative with speed, scalability, security, and required compliance controls such as identity management. The SOV is designed to circulate alongside the United States dollar, which is used as the official currency in the country, and help the Marshall Islands operate efficiently in the global economy.

The SOV supply is algorithmically fixed to grow at 4% each year to prevent inflation.

This success is little talked about in the blockchain industry, yet it is one of the most impactful solutions. And other similar projects are being prepared.

Wyoming, a state known for its crypto-friendly regulations, has embarked on an initiative to issue a new stablecoin. This initiative is part of the Wyoming Stable Token Act, which was introduced in February 2022 and became law in March 2023. The Act authorizes the issuance of a U.S. dollar-pegged stablecoin redeemable for fiat held in an account by the state.

The Wyoming Stable Token Commission, established by the state legislature, is responsible for this project. The commission is tasked with deciding the overall number of tokens to be issued, concluding the requirements for redemption, and selecting the financial institutions to manage the tokens.

Several blockchain projects are participating in the discussions around this initiative, including Cardano and Ethereum. It seems that the project will be multi-platform.

This initiative represents a significant step towards the integration of blockchain technology into the traditional financial system. However, it’s important to note that the project is still in its early stages, and more details will likely emerge as it progresses.

Based on the information available, it appears that Emurgo, not IOG, is involved in the discussions about the stablecoin initiative in Wyoming.

Emurgo, the official commercial arm and a founding entity of the Cardano blockchain, has offered its support for Wyoming’s Stable Token Initiative.

As for XSY, there is no specific mention of its involvement in the Wyoming stablecoin initiative based on the current information available. We assume that XSY is not involved in the debate in any way.

One thing is certain: governments are showing interest in issuing various forms of stablecoins on the blockchain. This doesn’t necessarily mean using a public blockchain; governments could opt for a private/permissioned version of the blockchain that can interface with public blockchains.

As for XSY, we predict that one of the project’s directions will be to explore this area to uncover new business opportunities. While it hasn’t been explicitly stated whether XSY will introduce a USD-backed or an algorithmic stablecoin, it’s plausible that they might explore both options.

Charles Hoskinson, a strong advocate for algorithmic stablecoins, would likely steer IOG in this direction if they were to start a new venture. That's what XSY is. Furthermore, there’s growing chatter within the community about a new, more economically efficient version of DJED. This emphasis on economic efficiency is also reflected in the XSY launch announcement.

It’s important to remember that Charles Hoskinson’s visionary project involves an algorithmic stablecoin anchored by crypto assets. Perhaps XSY is the anticipated project that could bring this to fruition.

Beyond the development of new technologies, the announcement also mentions forming partnerships. These collaborations aim to yield more predictable results by enhancing market access and utilization and fostering economic growth.

However, the specifics, such as the number of partnerships and the entities involved, remain unclear. It’s possible that these activities could mirror those undertaken in places like the Marshall Islands or Wyoming.

XSY aims to tackle issues related to inefficiencies such as high expenses in cross-border transactions, unavailability of financial services, and extreme currency fluctuations in developing nations. These issues hinder a significant portion of the global population from accessing essential goods or services, earning a sustainable income, and accumulating wealth.

The new initiative seeks to open up economic access via blockchain technology. XSY aims to offer the necessary tools in collaboration with partners to deliver reliable technology. The ultimate goal is to enable a range of innovative and diverse digital assets that not only complement traditional financial instruments but also fiat-backed stablecoins.

Conclusion

W. Sean Ford and David Markley are both proficient leaders with the ability to successfully execute the project. Their past performances have been commendable. Despite the ambiguity in the team's tasks from the unclear statements, the path forward is clear. The financial landscape suffers from high volatility, both in the realm of cryptocurrencies and in developing nations where traditional currencies are plagued by high inflation.

There’s a considerable discussion within the Cardano ecosystem about stablecoins backed by the USD, yet the fact remains that none exist at present. The introduction of a new stablecoin by XSY could significantly enhance the ecosystem. It’s unfortunate that the announcement lacked detail and didn’t provide any specific goals or timelines. As a result, we’re essentially aware that something is in the works, but the specifics remain unclear. More direct communication would be appreciated by the community.

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