Jared Tate, the founder of the DigiByte cryptocurrency, announced the work of his team on launching of the decentralized stablecoin DigiDollars on the DigiByte blockchain.

“All these other stable coins are launched on very insecure centralized networks. Total junk,” he noted.

According to Jared, the existing stablecoins are controlled by centralized groups that promise to back coins with money on a bank account. Users must trust these companies, which act as a central bank that prints digital tokens, said Tate.

He proposed creating a decentralized system in which users will secure their own DigiDollars with their own money on bank account tied to the wallet.

Using a smart contract and API, the real account balance will be confirmed in real-time.

However, users claim that such a system would in fact be controlled by banks that could block the API access to individuals that use virtual currencies. In addition, questions remain in compliance with the KYC and AML.

Tate agreed that the criticism was justified, nevertheless called his idea fully feasible.

Previously Jared criticized the Poloniex exchange for joining TRON’s “centralized project”. To which Poloniex responded by delisting DigiByte.