Circle, the issuer of the second largest centralized stablecoin USDC, has announced its intention to fully support the merger of the Ethereum network and the transition to the Proof-of-Stake (PoS) algorithm.
The USDC stablecoin is the largest ERC-20 asset on the Ethereum network and the largest centralized USD-backed stablecoin. Since the launch of the Ethereum network in 2018, the USDC market capitalization has exceeded $45 billion.
Circle has announced its decision amid growing rumors of a planned hard fork of the Ethereum network, announced by major player in the Chinese mining ecosystem, Chandler Guo.
“As an issuer of USDC, following the merger, Circle intends to fully support the Ethereum PoS chain. We understand our responsibility to the Ethereum ecosystem, commercial companies, developers and end users dependent on USDC, and we intend to do the right thing. We are not going to speculate on the possibility of forks after the merger of the Ethereum mainnet. We believe that USDC, as a network asset, can only exist as a single valid version, and plan to fully support the upgraded Ethereum PoS chain,” Circle said in a statement.
The company shares the opinion of the Tether team, Paolo Ardoino, CTO, and Sam Kazemian, founder of Frax Finance, who have declared their full support for Ethereum 2.0.
At the same time, cryptocurrency exchange Poloniex said it would support any potential Ethereum forks as “species diversity” creates a field of opportunity.
Earlier, Ethereum co-founder Vitalik Buterin, speaking at the BUIDL Asia conference in South Korea, said that the future and viability of the network’s controversial hard forks will be determined by the community. He sees “no indication” that any controversy or opposition to the merger will become an issue as the Ethereum network transitions to PoS.
Source: Bits
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