on the crypto
Coinbase and Circle form new partnership. Interesting agreement between two of the most well-known names in cryptocurrencies.
Two of the largest companies operating in the cryptocurrency market, Coinbase e Circle, are joining forces to try and contribute to a more significant development in their asset class. Start-ups announced last Tuesday the construction of a new joint venture known as "CENTER Consortium", Which, according to shared opinion, should aim to accelerate the adoption of cryptocurrencies supported by fiat government currencies such as the US dollar.
Coinbase and Circle
"Coinbase e Circle they share a common vision of an open global financial system built on the rails of cryptography and block chain infrastructures, and realizing this vision requires industry leaders to work together to build interoperable protocols and standards, "said Jeremy Allaire and Sean Neville, Circle co-founders in a Tuesday press release.
Circle launched its dollar version of what is called "stabilecoin”Already in May. The fintech company, with a value of $ 3 billion in its most recent round of financing, has formalized a series of agreements in a long-term project, which supports the belief that - despite the collapse of Bitcoin prices - the cryptocurrency economy is here to stay.
USD Coin Coinbase
In this context, the "USD Coin" was certainly considered as one of those bets, and from Tuesday it will be possible to buy and sell it on the popular Coinbase cryptocurrency exhcange. This is the first time that Coinbase has supported a "stable" currency.
Bitcoin's price has fluctuated sharply since it hit nearly $ 20.000 last year, making it almost impossible to use it as a viable payment alternative. A stable currency like Circle's USD Coin, by comparison, is meant to represent a single US dollar. It is in fact a 1: 1 representation of the green ticket, built on the blochchain of Ehereum. Circle has specified that each USD Coin will be guaranteed by a corresponding US dollar, held in accounts subject to regular public reporting of the reserves, Circle said.
USDC
“We view the USDC as an important step towards a more open financial system. The advantage of a blockchain digital dollar - like the USDC - is that it is easier to program, send, use in applications and store locally than traditional US dollars "- said Coinbase (see the Coinbase commissions ).
However, it is also true that other stablecoins have proven to be less than stable, as their name would seem to suggest instead. In early October, for example, the price of Tether, which is also destined to be pegged to the US dollar, plummeted below 90 cents after the Hong Kong-based cryptocurrency exchange system became insolvent. Critics of ( Tether see listing ) questioned whether that cryptocurrency was really backed by the equivalent amount of US dollars.
Circle CEO Jeremy Allaire has made several long-term bets on the future of the cryptocurrency, and he recalled that the USD Coin is not intended to replace the US dollar at all, but it is more of a way to take an existing dollar and make it compatible with the cryptocurrency infrastructure, better and faster than existing payment systems.
