For the Camino blockchain, SH Financial will launch three stablecoins with countervalues in USD, GBP and Euro’s. With these virtual (digital) assets, the travel industry can trade and pay for products and services within the dedicated shared network at stable countervalues.
The stablecoin value is one hundred percent secured by SH Financial at the National Bank of Lithuania in accordance with European law, meaning that for every stablecoin in use on Camino there is a FIAT counterpart in a secure EU regulated bank account. Stanhope issued stable coins are therefore truly stable, as opposed to algorithmic or other non-FIAT-backed stablecoins that are commonly used in the virtual asset (aka crypto) space.
The advantage of virtual tokens when trading in the decentralized network is that the means of payment works globally via Camino with minimal effort and/or fees. It is easy to send and receive once B2B senders and recipients have set up a digital wallet. Camino’s blockchain technology also ensures cryptographically secured, tamper-proof transactions.
In practice, stablecoins are used, for example, when a tour operator as a buyer wants to purchase a travel service such as a hotel room in the shared network. To do so, he or she exchanges Stablecoins for Euro’s at SH Financial (to pay with). The seller or hotelier can leave the stablecoins in his/her wallet or exchange them for FIAT currency such as Euro’s.
Ralf Usbeck, CEO of Chain4Travel, explained: “Stablecoins will become elementary components in the Camino network especially for the B2B business, as these ensure firmly calculable prices and are one hundred percent secured by FIAT currency. SH Financial is a trustworthy partner with a tourism background on European soil, with a global banking network.”
Tom Dillon and Mohit Davar are co-founders and board members of Stanhope Financial Group. Davar agreed: “Our strategy is to act as the bridge between innovative solutions and traditional regulated financial service rails. The Camino blockchain perfectly fits within that strategy, and as a dedicated secure network for the international travel industry, offers a first-class basis for successful travel services trades. The fast and convenient transactions will significantly reduce the administrative effort of tourism transactions.”