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Circle Launches New Bitcoin Bank

Mobile Commerce Insider Featured Article

May 19, 2014

Circle Launches New Bitcoin Bank

By Oliver VanDervoort
Contributing Writer

The Internet age has birthed quite a number of different digital currencies. The problem has been and will continue to be in the near future the lack of consistency and dependability of bitcoin and the like. The complete and total collapse of the bitcoin exchange at Mt. Gox last month illustrates this quite well. Bitcoin has also been a frequent target of hackers. Despite all of that, companies are still supportive of the digital currency. Circle is a company hoping to change the fortunes of bitcoin for the better, in the very near future.

The startup has already raised more than $26 million in its venture. Circle basically wants to serve as the first wide scale bitcoin bank, complete with an easy to use web interface. Customers can simply deposit money into their Circle accounts and immediately see that money changed to bitcoin. In order to keep this currency safe, Circle physically isolates bitcoin keys in cold storage vaults that need multiple “signatures” in order to bring them online.

Better yet for Circle customers is that the deposits are 100 percent insured, meaning the bitcoin bank operates just like any other bank dealing with regular money. The firm is also complying with all U.S. money transmitting and laundering laws. The company’s CEO, Jeremy Allaire (News - Alert) says the point and focus of all of this is to make sure that it is easier for people to adopt bitcoin currency.

Circle launches its service around the same time that companies like Kik are trying to come up with brand new digital currencies that would directly compete with bitcoin. Circle is hoping that the fact that most people who talk digital currency right now are more familiar with bitcoin. The focus of its bitcoin bank is to make it that much easier to carry out transactions using bitcoin. Allaire added that Circle isn’t necessarily trying to drive adoption of bitcoin, but rather drive the utility value and remove as much friction as possible.

Edited by Maurice Nagle

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