That time is not far when you use cryptocurrency to pay for your morning coffee and happy hour drinks. This would be as simple as using Venmo or credit card today.
There is a payment startup called Circle, owned by Goldman Sachs. It made an announcement yesterday that it will launch a new cryptocurrency by the name of Circle USD Coin. Basically, the new currency is a digital version of the dollar that you will be able to buy by trading in, you know, real money.
This is actually the first cryptocurrency launched by a prominent financial institution. It turns against the whole point of decentralized and dispersed cryptocurrencies like Bitcoin, Goldman Sachs and Circle are planning to bring some constancy to the cryptocurrency market. This is because it has gone down and recovered an exhausting number of times only in one year.
The circle does not require its USD Coin to be subject to the inflation and instability intrinsic to other unregulated cryptocurrencies. Therefore according to CNBC, it will tie the value of a coin to that of a US dollar.
For a second time, this completely much turns against the whole point of cryptocurrencies. This is because they were actually created to present a transparent financial market free of directives from centralized government and the impact of big banks.
Although it seems like that corporate influence and regulation are likely to play a bigger role in the space. Sam Altman, an investor in Silicon Valley believes that USD-based cryptocurrency should be under distributed control.
Even though other cryptocurrencies can be hewed when users provide a part of their computer’s processing power to assist retain the updated ledger of all dealings. It appears as the only method to attain new USD Coin. This will operate on the Ethereum platform for the predictable future. Therefore, your widespread rig won’t assist you in attaining more USD Coin. It seems like you will just have to purchase it with USD.
In the meantime, you are required to give Circle one (1) dollar every time you would like one (1) dollar coin. It appears like the currency will function more as an open-source Venmo. It provides you the platform where you can pay for things with a digital cryptocurrency rather than paying with a credit or debit card.
According to Goldman Sachs, latest investment has been made in crypto realm and declaration that firm would trade Bitcoin in place of investors. Therefore, it makes more sense that financial giant is working to control the market in the best possible manner.
After viewing the discussion above, it is evident that USD Coin does not seem to have any concrete purpose beyond launching a stable and perhaps accessible cryptocurrency. For the predictable future, a dollar you have is almost the same as a dollar on the USD Coin blockchain.
