- US stablecoin issuer USDC (USDC) plans to issue its own wrapped bitcoin, cirBTC.
US stablecoin issuer USDC (USDC) plans to issue its own wrapped bitcoins, but for what purpose?
In the near future the company will introduce Circle tokens Wrapped Bitcoin (cirBTC), whose price will be pegged to the BTC price. The stability of the coin’s value will be ensured by the company’s Bitcoin reserves, which will be verified by independent experts.
CirBTC will be released in defiance Wrapped Bitcoin (WBTC), which appeared on the Ethereum blockchain in 2019. Circle employees hint that, unlike WBTC, their wrapped bitcoins will be a secure and neutral version of BTC, which will lead to their widespread use by clients of decentralized services. In other words, the issuance of cirBTC is intended to increase the attractiveness of BTC investments.
$1.7 Trillion Bitcoin Remains on the Periphery DeFi. Not because people don’t want to make money from storing them or increase their liquidity, but because they don’t trust the issuer. CirBTC will solve this problem because it’s based on an infrastructure that market participants can rely on— wrote Circle Vice President Rachel Meyer.
Rachel Meyer
But Block- a detective under a pseudonym Zach XBT questioned the reliability of Circle and, consequently, cirBTC. He reminded, that the company has repeatedly failed cryptocurrency owners and product developers during cyberattacks. Specifically, it took the company’s employees six hours to freeze assets belonging to the Drift exchange hackers. kidnapped $285 million worth of virtual currency. If Circle continues to be slow to respond to cyber threats, cirBTC holders will become a prime target for hackers.
Risk Warning:
The information on this website is for informational and educational purposes only and does not constitute investment advice or financial recommendations. Cryptocurrencies and digital assets carry a high level of risk, including possible loss of capital. The editors are not responsible for decisions made based on the published materials. It is recommended that you conduct your own research (DYOR) before making any investment decisions.