FAQ

General

What is a cryptocurrency?

A virtual currency typically characterized by cryptographic security and trustless transactions verified by a decentralized network.

What is a stablecoin?

Stablecoins are cryptocurrencies pegged to financial instruments, typically fiat currencies, and offer many of the advantages of cryptocurrencies, such as rapid transaction times and decentralised infrastructure without the price instability commonly experienced by cryptocurrencies

What is a smart contract?

A computer program often running on a decentralized virtual machine which enforces contracts through the automatic execution of algorithms by the program.

What is an ERC-20 Token?

An ERC-20 token is a smart contract token adhering to the Ethereum ERC-20 (EIC-20) standard, which specifies definitions such as the token name and symbol, and functions such as mint, pause and burn.  ERC-20 standardisation allows important infrastructure components of or related to the Ethereum network such as wallets to be able to interact with such tokens in a consistent way.

What is the SDR token?

The SDR token is an ERC-20 token which is pegged to the basket of currencies of the IMF’s Special Drawing Right (SDR) and fully backed by collateral reserves.

What is the International Monetary Fund (IMF)?

The International Monetary Fund (IMF) was founded in 1945 by the Allied nations of the Second World War and is a leading international organization of the global financial system, with 189 member countries.  It acts as an international central bank, and is often involved if member countries have financial difficulties, providing emergency funding and expertise.

How is the SDR token pegged?

The SDR token is pegged to the basket of currencies of the SDR through 100% holding of equivalent collateral reserves held by banks.

What are the underlying assets?

A financial product derives its value from the underlying assets it represents. SDR tokens derive their value from the collateral reserves  which are held to back the SDR token.  The details of the holdings are published on the SDR website.

How are the underlying assets of the SDR token audited?

A third party auditor verifies the holdings of the underlying reserves of the SDR token and the reports are published on the website.

What is rebalancing?

Rebalancing is when the weights of the constituent fiat currencies of the token change. The IMF usually changes the weights of the Special Drawing Right every 5 years.

What is the Special Drawing Right (SDR)?

The Special Drawing Right is a reserve asset for central banks, defined by a basket of fiat currencies, and created and administered by the IMF. 

Token Related

Who issues the SDR token?

DQR xxx in xxx issues the SDR token.

How do SDR tokens work?

SDR tokens operate on the Ethereum platform using the ERC-20 standard. The fiat currency assets backing SDR tokens are held in bank accounts.

How do I buy or sell SDR tokens at DQR-OTC?

To purchase or sell SDR token one has to sign up for a DQR-OTC account.  Clients can then buy and sell SDR tokens for fiat currencies or cryptocurrencies on the DQR-OTC platform.

What are the fees?

DQR-OTC has the following fee structure:

Purchase: 0.5%

Sale: 0.5%

What happens if DQR OTC does not exist anymore?

In the unlikely event that DQR-OTC is dissolved, the tokens will continue to exist.  . 

Who can purchase or sell the tokens through DQR-OTC?

Stablecoins are cryptocurrencies pegged to financial instruments, typically fiat currencies, and offer many of the advantages of cryptocurrencies, such as rapid transaction times and decentralised infrastructure without the price instability commonly experienced by cryptocurrencies

Can DQR make changes to the construction of the SDR token?

Yes, DQR can make changes to the SDR token. All changes that are made will be disclosed prior to their implementation.

Are SDR tokens separate from DQR?

Yes. Since SDR tokens are on the Ethereum platform, they can be withdrawn from the platform and held in a third party wallet or moved to third party exchanges. 

Other

Is there a minimum purchase requirement?

No, there are no minimum purchase requirements.

Do I need to keep tokens for a minimum time?

No, the tokens can be traded similar to any other cryptocurrency. They can be sold or bought at any time of the day without any restrictions. At present, only DQR-OTC is supporting trading in SDR tokens.

Can I move SDR tokens to another exchange?

SDR tokens make use of the Ethereum platform and thus they can be transferred to any other wallet with any third party supporting ERC-20 tokens. Hence any exchange can support trading the tokens.

Can I move the tokens to an external wallet?

Yes, SDR tokens make use of the Ethereum platform and they can be transferred to any third party wallet supporting ERC-20 tokens. This may incur charges from third party wallet providers. 

Is there a maximum or minimum purchase amount?

No, there are no maximum or minimum purchase amounts.

What if one of the fiat currencies in the SDR basket of currencies fails?

If a fiat currency in the SDR basket of currencies fails, the IMF’s decision will be followed in a timely fashion.

Where can I see the Ethereum blockchain information on the SDR token smart contract?

The SDR token smart contract is deployed on the Ethereum mainnet at the following address:
xxxxxxxxx

 

Etherscan provides comprehensive information on its website at

https://etherscan.io/address/0x0000000000000000000000000000000000000000.

Are there any similar tokens to the SDR token on the market?

Yes, a number of stablecoins backed by bank held reserve holdings exist, for example Tether, Gemini dollar and Paxos.