Two huge cryptocurrency companies, Coinbase and Circle, are actively working in a joint effort to make money as easy transferable as data on the internet. Recently both firms have announced their new Stablecoin Network called CENTRE.
Coinbase and Circle call it a “membership-based framework and governance scheme for the development and growth of money on the internet.” Their main goal for CENTRE is to enable crypto asset functionality across multiple blockchains. This includes both – public and private blockchains.
“Ultimately, we foresee a global economic transformation that is made possible by programmable money. 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,” comments Circle.
They elaborate on the problem which blockchains are facing now. Each one of them serves a different function and use cases. CENTRE now allows them to benefit from an interoperable stablecoin for other currencies “that is anchored in a full reserve, transparent and compliant governance scheme.”
Basically, they’re aiming is to make a diverse ecosystem of chains by building standards which then could be implemented in any type of blockchain.
A Membership-based Framework
However, as good as it sounds, Coinbase and Circle have made this a membership-based project. The members of this network will need to contribute to the development of the CENTRE’s technical standards and support its open source software. At the moment, it’s not clear whether members will actually need to improve the code or just make a donation.
Additionally, member companies will need to be regulated by their operating governmental instances. These “members” could be banks, trust banks or money transmitters. Also, there will be regulatory requirements within the CENTRE network to which all the members will have to comply. At the moment, there are no other companies than Coinbase and Circle, which have joined this network.
Future Plans for CENTRE
Coinbase and Circle plan to grow their stablecoin support even outside the U.S. and the Dollar, by introducing new options for global leading reserve currencies. However, the most promising vision for the future for both of these companies is the idea of a new global digital currency. That could be a combination of many future reserve currency stablecoins and Bitcoin as well.
“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.”