Cryptocurrency firm Circle and crypto exchange Coinbase have announced the launch of the CENTRE Stablecoin Network.
The network is a bold effort that aims to make moving money around the world as easy as sharing data over the internet.
Circle revealed in a blog post that it and Coinbase have been working on a “membership-based framework and governance scheme for the development and growth of money on the internet” since the two companies formed the CENTRE Consortium and launched the USDC stablecoin.
“Ultimately, we foresee a global economic transformation that is made possible by programmable money,” says Circle.
“People and businesses will be able to enter into diverse economic arrangements with anyone in the world easily and safely.”
“The global digital currency age aims to make the movement of value accessible and free for everyone on the planet so that more people and businesses can participate in economic activity and value exchange.”
A common stablecoin
One of CENTRE’s main goals is to enable crypto assets to function across multiple public and private blockchains. To do this, CENTRE believes there is a need for a common stablecoin.
“Each chain will benefit from a common interoperable fiat stablecoin for major currencies that is anchored in a full reserve, transparent and compliant governance scheme,” says Circle.
USDC will be the first CENTRE stablecoin due to the critical role USD markets play in the global crypto industry. The consortium plans to introduce new currencies into its network in order to expand its support for fiat tokens beyond the U.S. dollar.
“The combination of these global digital currency tokens and open, permissionless public blockchains with smart contract infrastructure will form the foundation for a 21st century digitally-native global economy that empowers people everywhere to participate and grow value,” said Circle.
“Circle and Coinbase are advancing a vision to make the movement of value more accessible and transparent, empowering more people and businesses around the world to participate in economic activity and value exchange,” Circle co-founder and CEO Jeremy Allaire told crypto news site CoinDesk.
Looking for new members
Circle and Coinbase are the only partners attached to the project as of now, but the two are looking for new members to join the CENTRE stablecoin network.
Members of the network are required to join Circle and Coinbase in contributing to the development of the network’s technical standards as well as the open source software on which its protocols are based.
The network also requires members to be fully licensed and regulated for electronic money services in the jurisdictions in which they operate.
Member firms will also need to have the proper licensing and regulatory permits for electronic money services in their operating jurisdictions. Banks, trust banks, and money transmitters are just a few examples cited by Circle.
The network is setting a high bar for members, but those who are accepted will have the option to receive returns on reserve assets allocated to them. They will also be able to generate revenue through the development of financial products and services based on CENTRE stablecoins.