Early this week, Coinbase announced that it would begin offering Circle’s USD Coin (USDC) on its platform. The move is part of the grand plan to launch the Coinbase and Circle stablecoin which would still be USDC.
The latest reports indicate that with the new stablecoin has the ability to restrict transactions with certain entities. CaptainAltcoin reveals that part of USDC’s user agreement prohibits using the cryptocurrency for various items.
Coinbase and Circle stablecoin to censor transactions
In particular, the cryptocurrency will not allow transactions with individuals in restricted territories. In part, the user agreement terms read:
” Without limiting the foregoing, you may not use the USDC Services if (i) you are a resident, national or agent of Cuba, North Korea, Sudan, Syria or any other country to which the United States embargoes goods (“Restricted Territories”), (ii) you are on the Table of Denial Orders, the Entity List, or the List of Specially Designated Nationals (“Restricted Persons”), or (iii) you intend to transact with any Restricted Territories or Restricted Persons.”
In addition, the Coinbase and Circle stablecoin does not allow purchase of black market items. One cannot even buy a knife or any other weapon using USDC. This is a surprising turn of events for the cryptocurrencies as their popularity surrounds their immunity to censorship.
Normally, cryptocurrencies like Bitcoin operate in self-sovereignty where they enjoy individual freedom. However, the new censored cryptocurrencies present a completely opposite narrative. According to CaptainAltacoin, Circle “completely controls the asset, monitors every transaction and can stop and ban you any time.”
In addition to the stablecoin, Coinbase and Circle formed a joint venture called CENTRE Consortium to police the stablecoin sector. According a joint statement seen by CNBC, the consortium will speed up adoption of stablecoins by setting protocol standards.
According to Circle co-founders Jeremy Allaire and Sean Neville, “Coinbase and Circle share a common vision of an open global financial system built on crypto rails and blockchain infrastructure, and realizing this vision requires industry leaders to collaborate to build interoperable protocols and standards.”