Coinbase and Circle join hands to launch USD Coin.
October 25, 2018 6:08 am,
Coinbase, of the biggest US Cryptocurrency trading platform and Circle Internet Financial are joining forces to establish a Consortium which is named as Centre. It aims at speeding up adoption of Cryptocurrencies backed by actual government currencies like the U.S. dollar.
The “CENTRE Consortium” as it is being called will establish standards for listing fiat currencies in a digital form. Centre will serve as a platform for users to make deposits from the traditional bank account, convert fiat currency into tokens issued by members to facilitate transactions.
Circle and Coinbase are the best known and most well-funded Cryptocurrency companies which are valued at $8 billion. This group aims at increasing the adoption of Cryptocurrencies known as “stablecoin” which are backed by a government currency like US dollar. It has the vision of an open global financial system built on Crypto and Blockchain infrastructure.
Circle’s stablecoin is known as “USD Coin” which is pegged 1:1 with the U.S. dollar. It is the way to take an existing dollar and make it compatible with the Cryptocurrency infrastructure. It will trade on Coinbase’s popular Cryptocurrency exchange. USD Coin is the first stablecoin supported by Coinbase.
The advantages of having Blockchain based digital dollar like USD Coin is that it is easier to program, send, use in apps and store locally traditional US dollars. This is an important step towards the financial system. This stable coin are ideal for business purposes and e-commerce applications as payments by these tokens can be made at any time of the day without any risks of price volatility which is associated with using Bitcoin or other Cryptocurrencies.
This token will be available for buying and selling starting from Tuesday.