Circle Explores Reversible Transactions to Combat Fraud and Hacks

According to PANews, Circle, a stablecoin issuer, is investigating the possibility of reversible transactions to aid in recovering funds lost to fraud and hacking incidents. This initiative appears to challenge the core principles of cryptocurrency, which emphasize irreversible and decentralized transactions. Circle's President, Heath Tarbert, disclosed to the Financial Times that the company is exploring mechanisms to reverse transactions in cases of fraud or hacking while maintaining the finality of settlements. He acknowledged the inherent contradiction between transaction reversibility and settlement finality. Tarbert also highlighted that while blockchain is often seen as the future of finance, there are benefits to incorporating features from traditional finance. He noted that the current financial system possesses advantages that blockchain does not yet offer. Some developers believe that establishing a degree of transaction reversibility for fraudulent activities, with consensus from all parties involved, is both necessary and feasible.