has led a $110 million investment in , in a funding round that values the company at $3 billion. Circle has also announced plans to launch USDC, a stable coin pegged to USD.
Circle Bitmain Partnership
The investment is the largest ever raised by a cryptocurrency or blockchain company, eclipsing $107 million by banking consortium R3.
(Source: )
The company was valued at about $480 million in 2016 having previously raised a total of $136 million. Existing investors in Circle Internet Financials include IDG Capital, Breyer Capital, General Catalyst as well as Digital Currency Group.
The Boston-based company provides cryptocurrency trading and investment services. Circle Internet leverages capabilities to offer peer-to-peer payment services. It also offers over-the-counter () cryptocurrency trading.
By teaming up with Bitmain, the company is on developing a fiat-based digital token, dubbed “USD Coin” or “USDC” that is to be backed by the U.S dollar. Bitmain will also help on the introduction of new stable coins supported by other fiat currencies while also making them interoperable around the world. The coins are to be stored in auditable bank deposits and redeemable by verified buyers.
USDC Coin: The Tether (USDT) Killer?
USDC is an based on the network. The coins will carry all the attributes of virtual currencies but not the that has derailed their adoption in the mainstream sector.
“It’s a version of fiat that can move at the speed of the Internet with global reach, with much less cost, with high levels of security. It’s a huge improvement for how fiat money transmission can work around the world for consumers and for businesses who might want to collect digital payment with tokens,” circle CEO, Jeremy Allaire.
Plans are already underway to integrate the new fiat backed coin on the Circle Pay that currently supports over seven million users. The new token stands to play a more significant role and enjoy immense success should the company find a way to monetize it.
Circle Internet should be able to generate more revenues in 2018 with the unveiling of the new coin even though cryptocurrency trading volumes have taken a hit in recent months.
Taking Over Ripple
The CEO has also confirmed that USDC will seek to provide greater transparency. Part of the plan involves disclosing all the partner banks upon issuance of the coin. However, the company is yet to reveal the fees, if any, that people will have to part ways with to use the coin.
The fact that it is impossible to transmit dollars over the internet or use them on smart contracts is a problem that Circle Internet intends to solve with the fiat backed coin. While still in the early stages of development, USDC looks set to be a competitor of (XRP) seeking to create an alternative to the interbank messaging platform.
Circle Internet has been making smart moves in the cryptocurrency space in pursuit of new opportunities for growth. Early this year it Poloniex, the cryptocurrency exchange, in a deal believed to be worth $400 million. It has already announced plans to expand from 230 staff to 400 before the end of the year, with the opening of new offices in New York, London, Paris, Madrid, and Beijing.
The company won’t be the first one to introduce cryptocurrencies tied to fiat currencies. Many companies have already tried to build stable coins with varying degrees of success. is one of the stable coins that has been in operation for quite some time with about $2.2 billion in circulating supply.
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As the popularity of cryptocurrencies continues to rise, investors are getting more interested in the industry. Governments are not being left behind either; they are increasingly noticing the rising adoption of cryptocurrencies and sending mixed reactions.
Most countries have allowed cryptocurrencies to exist in their jurisdictions; however, some have moved to regulate them while others, like and Nepal, have declared them illegal. All in all, many governments now understand the cryptocurrency phenomena is not a passing cloud.
Increasingly, they see cryptocurrencies as potential disruptors of the global financial structure. In a communique issued at the close of the G20 Summit in March this year, global economic leaders acknowledged that to “improve the efficiency and inclusiveness of the financial system and the economy more broadly.”
Why Governments want National Cryptocurrencies?
The decision to create national cryptocurrencies is mostly influenced by the potential benefits they are likely to offer governments and their citizens.
Cutting The Middlemen: Governments feel that cryptocurrencies would lower transaction costs and thereby increase access to financial services, benefiting millions of unbanked citizens.
Big Brother Tool: A state cryptocurrency will allow governments to track all your transactions. Already most of the transactions are tracked, but with cash ( a p2p anonymous instrument) out of the picture and state-sponsored cryptocurrencies in action would imply all citizen’s transactions will be at disposal of the government.
Hedge Against Sanctions: In some instances, governments decide to introduce national cryptocurrencies to avoid international sanctions as is with the case with Russia and Venezuela.
Current State of National Cryptos
From the look of things, digitalization of currencies seems inevitable. Countries like and
Governments are not only getting into the cryptocurrency space and but are opting to . In the recent past, several governments have made public their plans to develop national cryptocurrencies.
Currently, only Venezuela has a functional cryptocurrency, that is accepted as legal tender nationally. A host of other countries including China and . Last year, China created a prototype cryptocurrency that it plans to introduce alongside the country’s main digital currency, the Renminbi.
Privacy Concerns
A quick review of history shows that the advent of the internet in the 80’s and 90’s enhanced interconnectedness at the cost of privacy. While it facilitated quick access to information and created space for people to express themselves on blogs, social networks, and forums, it has changed our lifestyles radically – ending user privacy.
As conceptualized initially, cryptocurrencies are aimed at restoring this privacy. In the early 90s, an informal group called Cypherpunks encouraged proactive utilization of cryptography and broad application of privacy. A document released by the group testifies of their commitment to online anonymity.
In part, the states, “We the Cypherpunks are dedicated to building anonymous systems. We are defending our privacy with cryptography, with anonymous mail forwarding systems, with digital signatures, and with electronic money.”
More than a decade after, Satoshi Nakamoto developed and published bitcoin’s in 2009. The sole purpose of bitcoin was to exist without government interference. In essence, bitcoin has reinvented money, allowing every single person to access a borderless, global financial system.
However, nine years down the line, the financial privacy brought about by cryptocurrencies is under threat as different countries seek to develop their national cryptocurrencies. The implications are enormous because governments will have full control of their countries’ national cryptocurrencies, monitoring the flow of funds using blockchain while asking citizens to follow KYC guidelines.
This unrestricted access to data relating to transactions embedded on a permanent ledger is a disaster. It infringes on the financial freedom and privacy that cryptocurrencies were intended to promote.
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Am 15. Mai um 4 Uhr nachmittags (UTC-Zeit) führte das bitcoin-Cash-Netzwerk eine Hard Fork durch. Das Software-Upgrade bringt alte Funktionen zurück in das BCH-Ökosystem und erhöht die Blockgröße auf 32 MegaByte. Roger Ver, Verfechter der bitcoin-Hard-Fork, zeigt sich optimistisch, was die BCH-Preisentwicklung bis Ende des Jahres angeht. Wie wir bereits am 20. April berichteten, plante […]Der Beitrag erschien zuerst auf .
