Dive Brief:
- Bitcoin startup Circle has raised $50 million in venture capital from Goldman Sachs and Asian firm IDG Capital Partners.
- Started by entrepreneur Jeremy Allaire, Circle will allow customers send and receive payments using U.S. dollars or Bitcoins.
- Circle may help a growing Chinese middle class spend money via e-commerce using Bitcoins.
Dive Insight:
The financial industry is backing virtual currencies with real dollars. Goldman Sachs and IDG Captial Partners participated in a funding round that raised $50 million in financing for Bitcoin startup Circle this week, and Coinbase recently attracted funding from the New York Stock Exchange and USAA.
Circle will allow users to send and receive payments in dollars or Bitcoins, with the Bitcoin system offering cheaper transaction rates. Dollars will likely be the currency of choice for those customers leery of Bitcoin’s fluctuations in value.
Established Asian venture capital firm IDG Capital’s interest could help Circle enter the Chinese market, where individuals can conduct transactions using the cryptocurrency. If Circle is successful, Bitcoin could open up e-commerce markets to trade with Chinese consumers.
