Coinbase and Circle Start New CENTRE Consortium to Push Stablecoin Forward
Tether better watch out because Circle, the company responsible for the Circle’s USD Coin (USDC), has partnered with Coinbase, the largest crypto exchange in the United States and one of the biggest players in the world. The companies have recently announced this joint effort at the CENTRE Consortium, which will speed up the adoption of cryptos backed by USD.
As Circle has already launched its own stablecoin, the USDC, the $3 million USD fintech startup will list its token on Coinbase. This is very important because USDC will be the first stablecoin ever to be listed in this exchange.
Betting on the Coinbase wallet is a great choice because the company was really needing a stablecoin right now and with USDC being paired 1:1 with the USD, it is a good choice, especially when you consider that older stablecoins like Tether are getting increasingly less prominent and losing their place in the market as new tokens are appearing.
An Open But Regulated Financial Financial System
The companies have told the media that they share a vision for an open global financial system when they announced the partnership. As many companies are announcing new tokens with stability as a feature, the companies intend to catch some of the clients that are interested now.
The co-founders of Circle, Jeremy Allaire and Sean Neville, have affirmed that Coinbase and Circler share a vision for a global system that will be built over the blockchain technology and that realizing this vision will require partnership, so listing the USDC will be a major step for both companies in getting closer to this goal.
According to them, USDC is easier to program, send and use in apps, which makes it easy to use as traditional US Dollars but with all the advantages of cryptocurrencies.
— eric.eth (@econoar) October 23, 2018
The token will be fully regulated and centralized, though, which have caused some concern with the people who are more in tune with Satoshi’s original vision. With Know Your Customer and Anti-Money Laundering verification, you will not control your own keys like you do with Bitcoin, so some people are questioning whether this new ecosystem will be really open or not.
Rumors of a backdoor that allows funds to be blacklisted and frozen have also concerned people in the crypto community. The truth seems to be clear, though. USDC is not for crypto enthusiasts, but for common users who do not care that they are not the “real” owners of their digital money. Because of this, Satoshi followers will probably loathe the token.
Some people have also been concerned that the value will be “less than $1 USD” because you are not in control of your cash, which can become a burden with time.
In fact, most tokens are centralized, so it is not so worrisome that USDC will also be as most tokens continue to work well even with the centralization. If that is a big no for you, though, you might just look for a stablecoin somewhere else.