Circle, the issuer of the stablecoin USD Coin (USDC), has launched testing of a new feature — the ability to cancel transactions in its cryptocurrency. This decision has sparked debate: the mechanism for annulling operations contradicts one of the key principles of blockchain — immutability of records.
The initiative has already faced criticism from members of the crypto community, who fear that such measures could undermine trust in decentralized finance, jeopardizing the security and reliability of the network.
Nevertheless, Circle's president Jeremy Allaire is convinced that this feature will benefit the ecosystem as a whole. In his opinion, the ability to cancel transfers will bring the crypto market closer to the traditional financial system, making it more convenient and secure for the average user. For example, in the event of a hacking attack, the issuer will be able to return stolen funds to the victims.
Interestingly, Circle's main competitor — the company Tether, which issued the stablecoin USDT — has long been using centralized control tools. In particular, Tether can freeze assets by blacklisting the addresses of wrongdoers.
In addition to canceling transactions, Circle also plans to implement a feature for masking transfer amounts. With this feature, USDC users will be able to hide the volumes of sent funds from prying eyes. However, the facts of transactions will still remain visible in the public blockchain explorer, as before. This measure is aimed at increasing privacy while maintaining transparency in operations.
