The Crypto Economy is Here
Coinbase & Circle = CENTRE
Coinbase and Circle announced a joint venture to boost adoption of dollar-backed digital coins.
The CENTRE Consortium will establish standards for listing fiat currencies in digital form and provide a governance framework and network for the global, mainstream adoption of fiat stable coins.
The first major initiative from CENTRE is USD Coin which is an open, fungible, and interoperable fiat stable coin.
This will improve UX and accelerate adoption of the Crypto Economy.
Tucked away is a section addressing Compliance, Identity, Fraud, and Risk summarized as follows:
- CENTRE plans to support the secure exchange of KYC/AML-related information to meet compliance obligations,
Providers of services for fraud detection, risk assessment, identity management, AML monitoring, and other services will be able to earn fees for the services they provide,
For example, when different wallet providers connect to one another using CENTRE it is important that these participating wallets meet applicable compliance and regulatory requirements.
CENTRE’s service provider interface will allow providers to supply features that support KYC and AML information exchange while leveraging cryptography to secure PII and reduce risk of PII leakage.
This is a topic that we have explored in prior research- Digital Identity as a Tradeable Asset.
We have recently had two roundtables in London and New York where we discussed this report and the potential for re-defining the KYC/AML process.
It was met with a combination of enthusiasm for the ambition but scepticism about implementation.
The Crypto Economy is here—and blockchain infrastructure will drive paradigm shifts to old processes which may currently seem unimaginable.
Self-sovereign digital identity will be a critical piece of its architecture.