Cassius
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April 30, 2015, 08:56:36 AM


Nice, but bitcoin is actually becoming less relevant to Circle's business, it would seem...

Suppose a person in the US sends USD throught Circle to a person in China who will receive CNY.  Circle does not necessarily have to use bitcoin for that.  If it has enough reserves at both ends, it only needs to adjust its own internal ledgers.  Like Western Union, or any bank. 

They need to send bitcoins, and sell them in the local markets, only if their reserves get too unbalanced.

Indeed, that was my guess for the reason for Coinbase and Circle getting so much VC investment: they intend to become competitors to PayPal in the "fiat" e-payment business, using bitcoin only occasionally if at all.

No. Not what the article implies.