A new cryptocurrency is in town by Goldman Sachs. Allegedly, you will be able to pay for everyday things with this new coin! It will be as easy as swiping a credit card.

A payment startup Circle which is owned by Goldman Sachs announced that it will be launching a new cryptocurrency. Looks like they had some interesting ideas in the creative department because the new coin will be called, you guessed it – Circle USD Coin. Essentially, it will be a digital version of the dollar and you will be able to acquire it with real money.

The USD Coin will be the first cryptocurrency issued out by a major financial institution. If you think about it, a crypto issued by a centralized entity goes against the ideology of Bitcoin and other cryptocurrencies of being decentralized and distributed. Goldman Sachs hopes that USD Coin will bring some stability to the crypto market, which has experienced numerous “crashed” this year.

According to CNBC, the USD Coin will be tied to the value of the US Dollar (it really reminds us of a cryptocurrency, what’s it called… Oh, yeah – Tether).

The reason behind tying the value of the coin to USD is to prevent instabilities and inflation. It might look contradictory to have a cryptocurrency based on the value of the US dollar and to be issued by a centralized entity. And it really is – crypto, in general, wants to be transparent and decentralized. Apparently, some people and investors strongly believe that cryptocurrencies based on the US dollar must be regulated with an iron fist.

How will you be able to get this USD Coin?

Some cryptocurrencies can be mined, and most of them are bought off an exchange. What about USD Coin? Well, you will not be able to mine more USD (coin) or buy it off an exchange. The only way to get your digital hands on this new digital asset will be to buy it or exchange your hard earned 1 dollar for 1 USD Coin. You will just have to buy it. Also, it will work on the Ethereum platform. Sounds good! People will spend less money on mining rigs, and will just buy more of this USD Coin.

People now will have a choice of payment. Imagine going to a restaurant and choosing to pay for the meal with A) Regular USD or B) USD Coin! It works just like your debit or credit card. This sounds a bit redundant unless this is going to be another hipster thing which is not cool yet.

Goldman has invested in cryptocurrency and announced that his firm will trade Bitcoin on behalf of his investors. In the end, he wants to control the market as much as he can.

The new announcement of USD Coin doesn’t bring anything new to the table, except for the original name and its impractical use in the real world. This may look like a stable cryptocurrency, and it really might be, but all in all, it’s just another US dollar, but this time on the Blockchain.

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Tags: #cryptocurrency #news #bitcoin #ethereum #blockchain #cryptocurrencynews