Circle is a next-generation blockchain company, designed to bring financial services to the next billion customers. Founded in 2013, Circle has so far operated as a consumer-to-consumer bitcoin wallet, but the company is now working towards a goal of becoming a full-reserve national digital currency bank.
The banking industry has been facing a crisis of trust, and it is taking an increasingly big toll on the services it offers. For example, the credit card companies and banks are now being investigated for their involvement in the recent credit card hack. And to make matters worse, people are becoming more aware of the fact that banks have been taking advantage of the government/financial system, which are basically the same thing.
According to its website, Circle intends to be a “full-reserve national digital currency bank”, which means that it will hold the vast majority of users’ cryptocurrency in reserve, instead of converting it into fiat currency or other cryptocurrencies. This is in contrast with many other digital currency startups, which typically do not have a physical location, and instead only operate as digital currency exchanges and custodians. From a financial security standpoint, this model makes Circle an appealing alternative for many Bitcoin-based startups, since they will no longer have to worry about storing large amounts of Bitcoin in their own wallets.. Read more about federal reserve digital currency 2023 and let us know what you think.
Circle, a digital payment startup funded by Goldman Sachs, has announced its intention to become a full-reserve national digital currency bank in the United States.
Circle co-founder and CEO Jeremy Allaire announced the announcement on Monday, saying that the company is willing to operate under the Federal Reserve’s oversight and risk management standards. The Treasury Department, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation are all part of the Federal Reserve System.
“We think that full-reserve banking, based on digital currency technology, may result in a financial system that is not only dramatically more efficient, but also safer and more resilient,” Allaire said.
Circle’s stablecoin USD Coin (USDC) is expected to reach “hundreds of billions of dollars in circulation,” according to the CEO, continuing to promote high-trust economic activity and becoming a popular instrument in financial services and online commerce applications.
“Establishing national regulatory standards for dollar digital currencies, including rules for reserve management and composition, is critical to unleashing the potential of digital currencies in the real economy,” Allaire said.
Circle is known as the principal developer of USDC, the world’s second-largest stablecoin by market capitalization after Tether (USDT). At time of publication, USDC is the eighth largest cryptocurrency by market value of $27.8 billion, while USDT holds nearly a $63 billion market cap, according to data from CoinGecko.
Full-reserve banking, as contrast to fractional-reserve banking, mandates banks to hold the whole amount of each depositor’s money in cash and cash equivalents, available for immediate withdrawal on demand. Full-reserve banking, often known as 100 percent reserve banking, is a system in which only a portion of bank deposits are guaranteed by real cash on hand and accessible for withdrawal.
‘USDC is halfway to switching PayPal,’ says Jeremy Allaire.
Circle just filed a registration statement on Form S-4 with the US Securities and Exchange Commission. The Securities and Exchange Commission has issued a preliminary statement and prospectus addressing the company’s proposed listing as a result of a merger with Concord Acquisition, a blank-check business. A new Irish holding company will purchase both Concord and Circle under the terms of the deal, and the combined business will become a publicly traded corporation that will be listed on the New York Stock Exchange.
Circle, the popular US-based cryptocurrency wallet company, is launching a new, multi-currency, multi-function digital wallet service called Circle Reserve that will allow users to store any blockchain assets they want, including digital currency, without requiring them to move their funds to a different wallet.. Read more about usdc and let us know what you think.
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