The SDR stablecoin is a cryptocurrency token issued by DQR which is pegged to the basket of currencies of the International Monetary Fund’s Special Drawing Right. The SDR stablecoin is fully collateralized with fiat bank deposits of the underlying constituents and is distributed on the Ethereum smart contract network as an ERC-20 token. The strength of the SDR stablecoin is to combine the advantages of cryptocurrencies, such as short transaction time, transparency and a decentralized system with the price stability of not only one fiat currency, in an attempt to minimise dependencies on exchange rate fluctuations. The SDR is a well-established reserve asset whose value is set by a basket of major fiat currencies and is administered by the International Monetary Fund, offering a sound price reference for the SDR stablecoin. The intention of this project is to engineer a bridge between the blockchain and fintech ecosystem and the central banking world to produce a multi-national vehicle for cross border transactions between institutions. In addition, the SDR stablecoin aims at enhancing cryptocurrency market stability by producing the world’s first international fiat-reserve collateralized pegged token, which could be used as a substitute currency for the unbanked.
Keywords – Cryptocurrency, Blockchain, Currency Basket, Token, Stablecoin, Special Drawing Right, International Monetary Fund
This document presents the background, motivation for and description of the DQR SDR smart-bond or SDR-i. The SDR-i is a bond instrument used to raise funds which are then used for the purpose of collateralising and enhancing the market capitalisation of the SDR stablecoin token. The SDR-i token holders participate in earnings derived from fees associated with SDR trades, and receive regular payments similar to a conventional bond. The SDR-i is administered on the Ethereum network, and a smart contract is used to pay coupons, using the SDR stablecoin token as a means of settlement. Hence, the SDR-i can operate autonomously, transparently and without the dependency of multiple intermediaries. Through the disintermediarisation and utilisation of a smart contract (or smart bond) the SDR-i aims at bridging the capital markets with the efficiencies of blockchain.
Keywords – Cryptocurrency, Blockchain, Bond, Smart Bond Token, Stablecoin, Special Drawing Right, International Monetary Fundi