Bitoin advocates have been patiently waiting when Jeremy Allaire, founder of Circle Internet, would reveal for his plans for developing Bitcoin products. The wait ended today at the Bitcoin 2014 conference in Amsterdam where Allaire took the stage to outline his plan for Bitcoin, posted The Wall Street Journal.
Allaire who has raised $26 million in money for his company detailed a free and seamless process to import traditional currency from a linked bank account and convert it into a Circle bitcoin account. As an Internet based financial services company Circle will be the digital custodian for a customer’s Bitcoin account.
The accounts will be quoted in bitcoin and the customer’s local currency. Allaire expects to attract the eagerly enthusiastic bitcoin user and a new market of consumers. He expects that the new account owners will be driven by the demographics of a young, technology oriented consumer.
While he is opening opportunity for the consumer to purchase around the world and provide merchants with buyers on a global level, Allaire is taking great care to provide transparency. Circle will offer a secure network structure audited by a national cybersecurity firm. Client best practices will be the mantra for Circle strict attention to security while providing offline cold storage vaults, as well as free insurance on deposits.
Circle will possess the features of Coinbase and Blockchain for providing a wallet and processing but providing traditional bank features of deposit and insurance. While Allaire’s vision for the development of an Internet financial services company is presented, it heralds the future world of transactions and not with the bank version of the twentieth century when you got a free toaster with opening an account.
Blockchain took away the pitfalls of a centralized situation like Mt.Gox under one person’s control and provided individual wallets. Coinbase stepped up the security with providing a private key to the owner to unlock their account without Coinbase access or knowledge of the key code. Now, Allaire is taking bitcoin transactions to the next level for a global market to pursue easy exchange for goods and services.
Because of the $26 million in venture capital investment moneys Allaire explains that Circle does not need to turn a profit in the start- up stage. Its goal is to introduce the consumer to the possibilities of bitcoin transactions and how to benefit from its use.
Allaire emphasizes that Circle is not to encourage speculation for bitcoin virtual currency but, “We want to make it easy for consumers to deposit and convert currency into a digital form that they can then use globally and instantly, not offer a trading exchange for investors to bet on a speculative asset.”
Since Robocoin announced that it will establish Bitcoin ATMs and regard transactions as “deposit” and “withdraw”, Allaire is using the same vocabulary to describe this process and brand it with Circle. The first Robocoin ATM was placed in Congress in late March with Congressional representatives using the machine for bitcoin exchange and purchases.
Allaire is well versed with the Internet as developer in 1995 with his brother and co-founder of the Allaire Corporation for the web development tool ColdFusion. He remained as Chief Technology Officer when Macromedia acquired the company in 2001. After he left Macromedia in 2003 he founded Brightcove in 2004 to create a video distribution platform for the Internet.