Bye Crypto? Circle Testing Reversible Transactions

According to a recent report by the Financial Times, Circle, the leading stablecoin issuer, is exploring a refunding mechanism.

The feature is highly likely to be controversial, considering that irreversible transactions are considered to be the key ethos of crypto.

That said, according to Circle president Heath Tarbert, it would make it possible to push the crypto industry closer to mainstream finance.

Irreversible transactions could be potentially used for fighting fraud and preventing various disputes.

Tarbert has acknowledged that the current financial system has certain benefits that are not present in crypto.

"Offensive"

In August, Circle announced that it was launching a stablecoin-focused blockchain called Ark.

However, some critics insist that calling the new project a blockchain would be too generous due to its extreme centralization. An unnamed venture capitalist cited by the Financial Times even described it as "offensive."

Circle claims that payments could be reversed with the help of an additional lawyer.

Bringing confidentiality

Apart from testing reversible transactions, Circle is also considering enhancing the confidentiality of transactions. Clients will be able to hide specific amounts of money that they are transferring with the help of the blockchain, but transactions will still be visible.