Wednesday 10 August 2022 ▪ 6:00 pm ▪
min read – with
According to official communication, Circle would allow everything related to the Ethereum Merge. On his blog, his administration even said that the giant stablecoin “it intends to fully and fully support chain of proof (PoS) after the Merger “. But this support for Merge is not 100%: in fact, Ethereum derivatives did not receive Circle’s endorsement.
Circle, a stab in the back of Ethereum?
As the Merge approaches, the entire crypto universe seems to be boiling. On the one hand, there are miners like Chandler Guo who make sure not to fall into anything after September. On the other side, we have Vitalik Buterin who continues to rise to the front of the stage to approve his idea of moving to PoS.
Recently, or more precisely yesterday, Circle Internet Financial spoke out on the same subject of the Merger. In its statement, it was said that it will not support Ethereum derivatives after the infamous software update.
Here’s what Bloomberg tweeted today:
” Circle, the issuer of the USDC stablecoin, said it will no longer support Ethereum derivatives when the blockchain network experiences a major software update expected to arrive next month. »
His team supported these statements with the following message:
” USDC as an Ethereum asset can only exist as one valid ‘version’ “.
And yet he is pro-Merge
Just yesterday Circle promised full support for Ethereum Merge. In his view, this step is a critical step in the “ scaling of the Ethereum ecosystem, Cointelegraph had reported.
” USDC has become a building block for Ethereum DeFi innovation. It facilitated the adoption of L2 solutions and helped expand the set of use cases that rely on Ethereum’s wide range of capabilities today. We understand our responsibility to the Ethereum ecosystem and to the businesses, developers, and end users that rely on USDC, and we plan to do the right thing. »
As a reminder, the stablecoin USDC is currently the largest dollar-backed asset issued on Ethereum. It is also the largest ERC-20 asset overall, as its market capitalization is valued at $45 billion.
In other words, it would be detrimental to Ethereum without Circle’s support. Should the divorce be finalized, DeFi applications on the blockchain will be affected, for example the way its value is stored there.
Fortunately, the Circle team is the kind of understanding:
” We understand our responsibility to the Ethereum ecosystem and to the businesses, developers, and end users that rely on USDC, and we plan to do the right thing. »
But this Circular support for The Merge also comes with conditions. Among other things, there is the fusion between the execution layer of Ethereum and Beacon. Furthermore he intends not to preside over possibility fork of type ETHW.
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