MOSCOW, September 29 (RIA Novosti) - A bitcoin bank called Circle has launched a free worldwide web app along with promises of Android and iOS apps in the near-future, The Guardian reported Monday.
"The benefit is going to be for people who want to use an online service, and don't want to worry about managing and securing private keys and so forth. They can store as much as they want, there's no fees, and it includes all the offline storage we provide as well as full insurance on all deposits," Netscape alum and founder of Circle, Jeremy Allaire told The Guardian.
Circle, founded by Allaire and his long-time collaborator Sean Neville, allows users to transfer cash using a bank account or a debit card, which is then converted into bitcoin to be spent online or in physical shops, according to the newspaper. The bank is different from its competitors in that it offers insurance for every deposit. The project raised some $25 million during its development.
"We're firmly focused on consumers," Allaire told the newspaper.
"We're very interested in how bitcoin is used for person to person payments, and we see our apps making that very instant, very secure and no fee for people," Allaire added.
The system allows anyone to join and requires a simple security set-up and verification process. Circle's no fee policy and acceptance of all users regardless of their financial background are key to the bitcoin bank's long-term goal to take on the legacy banking model, as well as companies like PayPal.
Bitcoin is a currency which uses technology to operate independently of central authority or banks. All transactions involving the digital currency are carried out via network. Businesses associated with bitcoin include WordPress, Reddit and Namecheap. The value of all bitcoins in circulation was worth over $1.5 billion at the end of August 2013.