{"id":10801,"date":"2021-08-11T07:54:11","date_gmt":"2021-08-11T07:54:11","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/circle-intends-to-become-a-full-reserve-national-commercial-bank\/"},"modified":"2021-08-11T07:54:11","modified_gmt":"2021-08-11T07:54:11","slug":"circle-intends-to-become-a-full-reserve-national-commercial-bank","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/circle-intends-to-become-a-full-reserve-national-commercial-bank\/","title":{"rendered":"Circle Intends to Become a Full-Reserve National Commercial Bank"},"content":{"rendered":"

Circle, a cryptocurrency fintech services company, announced it intends to become a full-reserve national commercial bank. This would bring a set of responsibilities and duties to the company equal to those of other mainstream banks: having to report to the Federal Reserve, U.S. Treasury, OCC, and the FDIC. However, it would also put the company in a unique position to link blockchain and traditional finance.<\/strong><\/p>\n

Circle Aiming to Become Full-Reserve Bank<\/h2>\n

Circle, a cryptocurrency fintech services company part of the Centre consortium, the issuer of USD Coin, has revealed<\/a> in a blog post yesterday it intends to become a full-reserve national commercial bank. The announcement was made by its CEO Jeremy Allaire in a post where he explains the journey the company will have to undergo to reach that goal. Allaire stated that, since its inception, Circle has intended to become a financial institution.<\/p>\n

And now that its flagship stablecoin, USD Coin, has reached a critical issuance mass of more than $27 billion dollars, it\u2019s time to take things a step forward. Allaire stated:<\/p>\n

We believe that full-reserve banking, built on digital currency technology, can lead to not just a radically more efficient, but also a safer, more resilient financial system.<\/p>\n

The company is embarking on this new journey because it anticipates a boom in the growth of USDC that will ostensibly be a crucial asset in the future of the cryptocurrency market. Allaire state that it is important to establish standards for these currencies. He stated:<\/p>\n

Establishing national regulatory standards for dollar digital currencies is crucial to enabling the potential of digital currencies in the real economy, including standards for reserve management and composition.<\/p>\n

<\/p>\n

USD Coin Controversy<\/h2>\n

Allaire addressed the worries of some customers and analysts in the cryptocurrency market, who have stated that USD Coin is not backed 1:1 by cash or cash equivalents. He recognizes that while the company has strived to maintain a high level of transparency, publishing attestations<\/a> of its holdings, critics have valid points when it comes to \u201cfundamental questions of liquidity, including liquidity in times of intense demand to redeem Usdc.\u201d<\/p>\n

For this reason, Allaire stated that now Circle will \u201cbegin to publish information about the fundamental liquidity of USDC and our liquidity coverage under Basel III<\/a>,\u201d a protocol that defines the Liquidity Coverage Ratio banks must maintain to serve users in high-stress periods.<\/p>\n

What do you think about Circle intending to become a full-reserve bank? Tell us in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nNews, Bank, basel III, Circle, Cryptocurrency, usd coin<\/p>\n","protected":false},"excerpt":{"rendered":"

Circle, a cryptocurrency fintech services company, announced it intends to become a full-reserve national commercial bank. This would bring a set of responsibilities and duties to the company equal to those of other mainstream banks: having to report to the Federal Reserve, U.S. Treasury, OCC, and the FDIC. However, it would also put the company…<\/p>\n","protected":false},"author":0,"featured_media":10802,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-10801","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/10801"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=10801"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/10801\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/10802"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=10801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=10801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=10801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}