Crypto Frontline

Goldman Sachs launching a cryptocurrency?

Goldman Sachs launching a cryptocurrency?

Goldman Sachs launching a cryptocurrency?
May 18
06:53 2018

It looks like the US financial giant is increasingly interested in the cryptocurrency market. We’ve seen that recently when officials from the bank announced it will open a Bitcoin trading operation. In an uncertain period, marked by the appearance of a lot of new tokens and an increasingly high skepticism, Goldman Sachs wants to expand its activity well into the industry and launch a new cryptocurrency.

Circle USDC – a mix of blockchain and US dollar

Circle, one of the payment startups owned by Goldman had recently announced the launching of its own cryptocurrency.  Named Circle USD Coin, it will combine the blockchain technology with the value of the US dollar. As reported by digitaltrends.com, those that want to own this cryptocurrency will need to have one dollar for each coin.

This could be an interesting move since it might have some good influences. First, because of the bond with the USD, volatility should be much lower, as the cryptocurrency will be influenced by the fluctuations of the US currency. Secondly, it will enable the US dollar operating on the blockchain technology.

Cryptocurrencies had been facing huge critics from analysts and popular investors around the globe, mainly due to their volatile performance and for the current lack of intrinsic value. Rightfully so, it is hard to think that a coin fluctuating 100% in a month could be the future. That is why recently public regulators had been increasingly interfering with the companies from the industry. Also, big companies like Google and Facebook had banned cryptocurrency advertisement, making the situation even worse.

The approach that comes from Circle had the potential to contribute to the maturation of cryptocurrencies, stabilizing their value. Also, pegging the Circle USD Coin will give reliability to the cryptocurrency, making it attractive for buying/selling products or services.

The company has support from Bitmain, the bitcoin miner that operated Antpool-a popular bitcoin mining pool. Bitmain had been reported to invest $110 million in Circle.

The cryptocurrency could build up its own reputation. Unlike Bitcoin, which started from a few cents and reached almost 20,000 USD in less than a decade, Circle USD Coin could have a smoother performance, making it suitable for the long run. The coins will be minted (not mined) in accordance with the rules set by the CENTRE open-source framework. Smart contracts will also be available on the platform and the coin will be ERC 20 compliant, as it had been reported on Circle’s blog.