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Circle Shifts Away from Bitcoin and Toward Social Payments

Joe Colangelo, Executive Director of Consumers’ Research, remarks on payment processor Circle’s shift in the Bitcoin space in Coindesk.

On the surface, Circle’s decision to stop offering bitcoin buying and selling services might have precedent. The company had long talked about its drive toward social payments, and its belief in the bitcoin protocol as a foundational layer for finance, not a currency for consumers.

One of those who wasn’t surprised by the decision was Joe Colangelo, president of the consumer advocacy group Consumers’ Research. He argued that Circle has signaled such a move “for some time now”.

He credited the shift to low revenues, arguing Circle could wind up reactivating the service under more favorable conditions in the future.

Colangelo told CoinDesk:

“If demand for bitcoin as an asset picks up I expect they’ll maintain an option to get back into the business of buying and selling bitcoin, the reality is that it’s probably not just profitable enough for them given the additional costs that come from complying with regulations and dealing with fraud.”

Read the full article here.