As reported by the Financial Times, Circle, a prominent issuer of stablecoins, is contemplating the introduction of a refund mechanism.
This proposed feature is likely to stir debate since irreversible transactions are considered fundamental to cryptocurrency’s core principles.
Nevertheless, Heath Tarbert, Circle’s president, suggests that this could bridge the gap between crypto and traditional financial systems.
The ability to reverse transactions might be leveraged for combating fraud and resolving disputes effectively.
Tarbert admits that conventional finance offers certain advantages absent in the crypto world.
“Controversial”
In August, Circle revealed its plans for Ark, a blockchain centered around stablecoins. However, some detractors argue that labeling it as a blockchain may be overly generous due to its significant centralization. A venture capitalist mentioned by the Financial Times even labeled it as “controversial.”
Circle asserts that transaction reversals could be facilitated with legal assistance.
Enhancing Privacy
Apart from exploring reversible transactions, Circle is also considering boosting transaction privacy. Clients will have the option to conceal specific monetary amounts during transfers via blockchain technology while keeping overall visibility intact.