Goldman Sachs Launches US Dollar Coin (Fedcoin).

[bitmover]

Goldman Sachs Launches US Dollar Coin (Fedcoin).


Goldman Sachs startup Circle, the Boston-based crypto finance company, has gone live with its stablecoin called the US Dollar Coin, or USDC.

This is the first cryptocurrency released by a major financial institution.

in order to avoid instability and inflation inherent to other unregulated cryptocurrencies, the value of the USDC will be tied to the dollar, according to CNBC.

“It unlocks an incredible amount of power for the dollar,” said Jeremy Allaire, CEO of Circle. “It’s basically a dollar that operates on the (Ethereum) blockchain.”

“Ethereum is the best bet but it’s not necessarily the end game,” he said. “For now it’s specifically on Ethereum.”

The USDC will be regulated as a registered Money Services Business under U.S. money transmission laws, and as a virtual currency, it will be regulated under its New York BitLicense. Furthermore, the company said it will hold deposits on a 1:1 basis in accounts that would be audited on a monthly basis. Each entity that wishes to enroll and issue USDC is held to the same regulatory-compliant standards.

Circle has said that the USDC will initially be available on its native trading platforms like the Circle Trade and Circle’s Poloniex exchange, and later available on other platforms like KuCoin, OKCoin, CoinEx, and others.

https://perc360.com/goldman-sachs-launches-us-dollar-coin-fedcoin-coinbase-to-become-the-crypto-regulatory-agency/

This is a great step.
A stable coin , with far more credibility than tether.

Stable coins are like security debt. It's a loan.

You give one dollar for each coin , and the company promises to buy back that coin for 1 usd.

Goldman Sachs is a much safer option than tether. They have more money, and better conditions to pay back those loans.

Certainly this is a good news for crypto, and bad news for tether

[1715006616]

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[Thinkable999]

Fedcoin will be operating in the ethereum space. This coin introduces some form of stability in the market but it is still not the best coin to invest in, because its con resides with its stability.

[stompix]

This is a great step.
A stable coin , with far more credibility than tether.
~
Certainly this is a good news for crypto, and bad news for tether

Wait, did you just called a centralized crypto controlled by GS, that can be printed in any number they want and is backed just like fiat by a promise, "good news" and "great step"?

How is this crypto any different from the fiat on your debit/credit card?

[NeuroticFish]

This is a great step.
A stable coin , with far more credibility than tether.

It's a great step for credibility indeed and a great step for speculators. I don't see any benefit for actual crypto in this.

Goldman Sachs is a much safer option than tether. They have more money, and better conditions to pay back those loans.

OK, but what makes this better than Gemini Dollar? I see no difference and you should start become wary that so many big companies want to sell you these "stable coins".
Stable coins are, after all, fixed value tokens, with value pegged to fiat and backed by certain institutions you can trust or not. With a new depression at the horizon, I guess that there many benefits for the issuers....

How is this crypto any different from the fiat on your debit/credit card?

Stable coins may "travel" much faster than fiat money and I see big use for them in arbitrage. No real use for anything else, of course.

[bitmover]

This is a great step.
A stable coin , with far more credibility than tether.
~
Certainly this is a good news for crypto, and bad news for tether

Wait, did you just called a centralized crypto controlled by GS, that can be printed in any number they want and is backed just like fiat by a promise, "good news" and "great step"?

How is this crypto any different from the fiat on your debit/credit card?

It's useful for trading and sending money between exchanges.

Also, you can trade anonymously on some Exchanges. You will never trade anonymously usong usd pair.
 
Depending on your country legislation, you can also postpone taxes.


So yes, it's very different from a visa card. It's not a micropayment method

[exstasie]

This is a great step.
A stable coin , with far more credibility than tether.
~
Certainly this is a good news for crypto, and bad news for tether

Wait, did you just called a centralized crypto controlled by GS, that can be printed in any number they want and is backed just like fiat by a promise, "good news" and "great step"?

I think some people like the idea of Tether, Circle, etc. printing money because it would mean cryptocurrency prices being pumped.

How is this crypto any different from the fiat on your debit/credit card?

It's still just a fiat IOU.

But, it can freely be sent among people (peer-to-peer) and different exchanges without the need for intermediaries (banks, merchant processors). They've obviously found a niche with traders hedging fiat value on altcoin-only exchanges that have no banking capabilities.

[HeRetiK]

[...]

Goldman Sachs is a much safer option than tether. They have more money, and better conditions to pay back those loans.

[...]

It's not like I trust Tether, but I'm not sure whether trusting Goldman Sachs is indeed the better option.

Keep in mind that we are talking about one of the banks that were at the forefont of the 2008 financial crisis. They would have gone bust if the US wouldn't have injected billions of dollars into them. They are one of the reasons why Bitcoin entered the stage to begin with. They are not to be trusted.

Goldman Sachs backing a stable coin means nothing. If shit hits the fan they'll probably just move the liability of their stable coin to a daughter company that then files for bankruptcy leaving their stable coin unbacked.

No thank you.

[Blasteros]

I am very confused with people that embrace this idea to buy Goldman Sachs coin. We are here because we don't want the banks and institutions. And when an institution jumps into the crypto world we are here to welcome them?

Huh... It is very interesting to see how community will see such a move from GS.

[Reatim]

I don't see any difference here. Its just the same as fiat so there's nothing it can bring significantly to the market. Just another way for  Goldman&Sachs to test it mettle and see how it goes for them.

[stompix]

It's useful for trading and sending money between exchanges.

Also, you can trade anonymously on some Exchanges. You will never trade anonymously usong usd pair.
 
Depending on your country legislation, you can also postpone taxes.

So yes, it's very different from a visa card. It's not a micropayment method

First, you will have to give us a source for this as I doubt GS will allow exchanges to use their coins without running KYC on all their customers, and second, you've already blown your privacy and anonymity the moment you have purchased those coins.

Also, and this is to reply to others, I wasn't comparing the coins to visa or mastercard but to the fiat that is used in transactions. You might sell your BTC for GScoin and by the time you want to transfer hem to another exchange to do arbitrage, news are up that GS is bankrupt and all gscoisn are worth 0.

Nope, it's nothing even remotely close to good news.

[Juggy777]

Goldman Sachs Launches US Dollar Coin (Fedcoin).


Goldman Sachs startup Circle, the Boston-based crypto finance company, has gone live with its stablecoin called the US Dollar Coin, or USDC.

This is the first cryptocurrency released by a major financial institution.

in order to avoid instability and inflation inherent to other unregulated cryptocurrencies, the value of the USDC will be tied to the dollar, according to CNBC.

“It unlocks an incredible amount of power for the dollar,” said Jeremy Allaire, CEO of Circle. “It’s basically a dollar that operates on the (Ethereum) blockchain.”

“Ethereum is the best bet but it’s not necessarily the end game,” he said. “For now it’s specifically on Ethereum.”

The USDC will be regulated as a registered Money Services Business under U.S. money transmission laws, and as a virtual currency, it will be regulated under its New York BitLicense. Furthermore, the company said it will hold deposits on a 1:1 basis in accounts that would be audited on a monthly basis. Each entity that wishes to enroll and issue USDC is held to the same regulatory-compliant standards.

Circle has said that the USDC will initially be available on its native trading platforms like the Circle Trade and Circle’s Poloniex exchange, and later available on other platforms like KuCoin, OKCoin, CoinEx, and others.

https://perc360.com/goldman-sachs-launches-us-dollar-coin-fedcoin-coinbase-to-become-the-crypto-regulatory-agency/

This is a great step.
A stable coin , with far more credibility than tether.

Stable coins are like security debt. It's a loan.

You give one dollar for each coin , and the company promises to buy back that coin for 1 usd.

Goldman Sachs is a much safer option than tether. They have more money, and better conditions to pay back those loans.

Certainly this is a good news for crypto, and bad news for tether

The only great news is this coin is backed by Gold Man Sachs otherwise there's nothing really new in it, this is basically fiat being presented in a new way, or branding fiat in a different avatar. I don't understand how you're linking it with crypto when this coin is a centralised coin, it's not limited and most importantly it's controlled by an organisation. There're many football clubs including Juventus who're launching coins like this, I think they're same and a must avoid.

[Cosbycoin]

Goldman Sachs Launches US Dollar Coin (Fedcoin).


Goldman Sachs startup Circle, the Boston-based crypto finance company, has gone live with its stablecoin called the US Dollar Coin, or USDC.

This is the first cryptocurrency released by a major financial institution.

in order to avoid instability and inflation inherent to other unregulated cryptocurrencies, the value of the USDC will be tied to the dollar, according to CNBC.

“It unlocks an incredible amount of power for the dollar,” said Jeremy Allaire, CEO of Circle. “It’s basically a dollar that operates on the (Ethereum) blockchain.”

“Ethereum is the best bet but it’s not necessarily the end game,” he said. “For now it’s specifically on Ethereum.”

The USDC will be regulated as a registered Money Services Business under U.S. money transmission laws, and as a virtual currency, it will be regulated under its New York BitLicense. Furthermore, the company said it will hold deposits on a 1:1 basis in accounts that would be audited on a monthly basis. Each entity that wishes to enroll and issue USDC is held to the same regulatory-compliant standards.

Circle has said that the USDC will initially be available on its native trading platforms like the Circle Trade and Circle’s Poloniex exchange, and later available on other platforms like KuCoin, OKCoin, CoinEx, and others.

https://perc360.com/goldman-sachs-launches-us-dollar-coin-fedcoin-coinbase-to-become-the-crypto-regulatory-agency/

This is a great step.
A stable coin , with far more credibility than tether.

Stable coins are like security debt. It's a loan.

You give one dollar for each coin , and the company promises to buy back that coin for 1 usd.

Goldman Sachs is a much safer option than tether. They have more money, and better conditions to pay back those loans.

Certainly this is a good news for crypto, and bad news for tether

I do feel like this is a major step point considering goldman sachs is a major major financial player in the game however lets not overreact. The company that started the usdc is circle and not goldman sachs, yes goldman sachs do own the company circle but not every single step of the way goldman sachs is with them and follow them and allow them to do something or do not let them do something, in general it is a seperate company in most decisions.

Also this is just simple usdt copy and not a true coin in itself neither, it is just there so that you can turn your money to dollar and back to crypto quicker instead of working for it harder.

[eaglewhite80]

At least, something like this will even douse the tension that comes with Tether imploding one day. At least the quality of being trusted and believed in as well as reliability, when it comes to hedging one's fund, this should at least help set some space.

However, it is also interesting to know that financial institutions are really looking to be a part of this space knowing the benefit they can derive from it, maybe we are just getting very close to mainstream adoption as the case may be.

[wuvdoll]

Fedcoin will be operating in the ethereum space. This coin introduces some form of stability in the market but it is still not the best coin to invest in, because its con resides with its stability.

It is not actually a coin that is meant for investment, it is a stable coin and the idea is to have something investors can always use to hedge their funds in the long run based on the fluctuations of the market and its volatility.

I believe it is something a lot of investors will find interesting, judging from all the fears that have been erupting with the way things are going with USDT and the worries when it comes to the possibility of seeing USDT implode someday. It is not actually different from the normal fiat which is why I said there is no point considering it as a form of investment in the first place.

But for a coin, backed by a very renowned institution, I believe this is something that would make a lot of sense in the long run, and maybe this is the time we will start beginning to see USDT taking some hit with all these development coming up as we get to start seeing USDC on most exchanges which would actually be somewhat safer and will bring less worries when it comes to hedging your funds in fiat. In some sense, it may turn a very good one looking at the fact that financial institutions who have been against the evolution of money when it comes to seeing bitcoin thrive are the same set up of people wanting to be a part of the space now.

[giapht]

Another great shark joined cryptocurrency market, don't know if it's a good news or a bad news, lol

[timerland]

I wouldn't regard this event as anything positive.

Obviously we can't stop them from launching their own fiat backed crypto, but the launch of it is pretty much not going to do anything good. They're likely going to be operating in principle in the exact same way as Tether, which makes it centralized.

All centralized coins, including those which are backed by fiats, I have no interest in ever using. Especially with the target audience of this coin most likely being institutional investors rather than average traders, I don't see this becoming news that is overly bullish. The best thing you can say about it is that potentially, it could be better than Tether, and even that is unconfirmed at this stage.

[exstasie]

It's not like I trust Tether, but I'm not sure whether trusting Goldman Sachs is indeed the better option.

Keep in mind that we are talking about one of the banks that were at the forefont of the 2008 financial crisis. They would have gone bust if the US wouldn't have injected billions of dollars into them. They are one of the reasons why Bitcoin entered the stage to begin with. They are not to be trusted.

As far as custodial obligations go, Goldman has nothing to do with it. It's not like they can freely dip into Circle's trust accounts and siphon customer deposits into investments. Goldman has plenty of other assets they can legally gamble with. If Goldman goes bankrupt, Circle's custodial liabilities can't legally be used to pay other creditors. This is a non-issue.

Goldman Sachs backing a stable coin means nothing. If shit hits the fan they'll probably just move the liability of their stable coin to a daughter company that then files for bankruptcy leaving their stable coin unbacked.

No thank you.

From where I stand, insolvency as a matter of business operation is not a concern whatsoever. Insolvency because bank accounts were seized by the U.S. government is the issue. Tether is much more likely than Circle to have funds frozen or seized.