Goldman Sachs, the global banking, securities, and investment firm, has just launched its own cryptocurrency named, Circle.
The new digital token is the closest the world of cryptocurrency has come to producing a digital currency that has real-world value and that means the ability to pay for goods and services with it as you could with a debit or credit card.
Circle is not just the name of Goldman Sachs new digital currency but also the name of its payment startup company that has recently launched the cryptocurrency with the same name.
The news of the launch came yesterday (5/16/18) and introduced the world to the Circle USD Coin, which is a digital dollar, so to speak. Basically, anyone can purchase the new digital coin by trading in their dollars for it. In essence, it is backed by a real-world asset with a set value and that is likely to give it real-world value in the eyes of merchants across the globe.
Circle Funding Round
Circle has been able to raise $110 million through funding rounds. The companies that have invested in the payment startup company include the following:
Bitmain (cryptocurrency mining company)
Digital Currency Group
Goldman Sachs (parent company)
The above funding and the recent launch of the Circle USD Coin have shot the company’s perceived value to above $3 billion.
The new Circle digital coin is the first attempt by a major firm to bring stability and practicality to the cryptocurrency world. While the new coin kind of goes against the whole notion of decentralized currency, it does present a practical solution to the question of how digital coins can be used in daily life. In other words, how can they be used the same way as cash and credit to purchase goods and services?
The Circle USD Coin has the potential to mitigate the influence of inflation as well as avoid the ups and downs of cryptocurrency trading as it is tied to the value of the US Dollar. Even though some cryptocurrency investors believe that this detracts from the allurement of having a decentralized and transparent currency, many others believe that it will only add legitimacy to cryptocurrencies at large as it is just another version of a digital coin, only this time one that has a tangible asset backing it.
More About Circle
Circle is not new to the cryptocurrency world, as the company has been operating one of the largest cryptocurrency trading platforms in the form of Circle Trade, which is able to manage over $2 billion per month in transactions.
Circle also runs a payment company that is able to competitively compete with two of the largest payment companies in the world: Square Cash and Venmo.
The ability to operate as a payment vendor and an over-the-counter digital currency trading platform creates an optimal situation in which to operate and manage a digital token, that too one that is backed by the mighty U.S. Dollar!