Circle Internet Financial and its investing enthusiast founder Jeremy Allaire are throwing their name and a $26 million dollar fund behind a platform that allows for the free storing, buying and paying with bitcoin.
This strong boost from a reputable corner may be the shot in the arm in the digitally back currency needs after some weeks of turmoil, most recently symbolized by the outbreak of infighting on the Bitcoin Foundation board in the wake of its most recent slate of elections.
In a blog post, Allaire says: “To the average consumer, early bitcoin products and services were complex, full of friction, unfamiliar, and some were also of questionable reputation in terms of the safety and security of money.”
The service, which is still in invitation mode, allows users to deposit currency into their account, which is then converted into bitcoin. When the customer wants to change the money back, all he or she has to do is ask to withdraw funds, at which time they are instantly converted back and added to a bank account.
Unlike Mt. Gox, which lost hundreds of millions of dollars worth of bitcoin due to lax security, Circle has fully invested in securing customer accounts multi-signature architecture, offline cold storage vaults, two-factor authentication, and free insurance. The service is also a regulated money transmitter in the US, which means it must maintain 100 percent of customer deposit value.
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