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Crypto Unicorn Circle Shutters Payment App to Focus on Stablecoins

Samantha Chang
Last Updated March 4, 2021 2:36 PM

By CCN.com: Crypto unicorn Circle is shutting down its Circle Pay app in July to focus on stablecoins and developing new wallet services. The parent company of crypto exchange Poloniex made the surprise announcement on its website  on June 13.

Circle says now is the appropriate time to retire Circle Pay because fiat tokens and stablecoins such as USD Coin (USDC) enable people to seamlessly transfer fiat value over blockchains without the risk of cryptocurrency volatility.

“Next month, we’re starting the process of sunsetting support for Circle Pay but are marching forward with the mission we began five years ago: creating new global crypto financial services.”

Circle: Blockchain is the Future of Finance

Circle reaffirmed its confidence that the future of finance is being built on blockchain technology, and says it believes that Circle Pay was a pioneering social payment app.

The company encouraged all Circle Pay customers to cash out their funds as soon as possible and provided these deadlines for the phase-out

circle pay shutters
Circle is closing its Circle Pay app. | Source: Circle

Laid Off Staff Amid Bitcoin Bear Market

Circle is a peer-to-peer payments technology company backed by Goldman Sachs. Like many cryptocurrency startups, it has been in transition mode following the brutal crypto bear market of 2018.

In May, CEO Jeremy Allaire announced that the company was laying off 10% of its staff (or 30 employees), citing the difficult regulatory environment in the United States.

While the bitcoin price has been steadily rebounding since April, the recovery from the recent downturn has been rather muted. Despite the recent market turmoil, Jeremy Allaire remains a crypto perma-bull, and says he believes the bitcoin price will soar to record highs over the next three years.

“It’s certainly going to be worth a great deal more than it’s worth today. I am long in the market.

Jeremy Allaire: ‘We Advocate Regulation’

In December 2018, Allaire said people shouldn’t lose faith in bitcoin because its fundamentals haven’t changed just because its price cratered.

Besides, Allaire says bitcoin has a “very significant role” to play as a non-sovereign store of value regardless of its daily price movements.

“The key thing with bitcoin is that it is unique in its security and its scale. As an idea that we need a scarce, non-sovereign store of value that individuals can hold in a protected fashion — that’s attractive all around the world.”

When asked when formal crypto regulations will be rolled out, Allaire says digital assets have actually been regulated for some time.

“The U.S. has more regulatory clarity than almost any other market in the world. The exchange of digital currency with the banking system has been regulated for over five years.”

Moreover, Allaire underscored that “we are advocating for [regulation].” He pointed out that Circle has been very active with Congress and policymakers to promote the mainstream crypto adoption. “We have been very active with Congress, with policymakers, with agencies. There’s a lot of engagement.”