Circle CEO Claims US Dollar is ‘Under Threat’
- Circle CEO Jeremy Allaire claims that the future of the US dollar is “under threat.”
- He urged US lawmakers to regulate the US stablecoin industry to increase USD’s use cases.
- Allaire believes that “the competition for what money gets used on the internet is increasing.”
- Currencies like the yuan might dethrone the US dollar with the help of the digital yuan.
The CEO of the firm responsible for issuing the USD Coin (USDC) Circle, Jeremy Allaire, has stated that the future of the United States dollar as the dominant currency in the world is under threat. He said that the USD might not remain the global reserve currency in the near future if the US Congress fails to regulate stablecoins as soon as possible.
In a 2-minute video by Circle, Allaire stated that it is imperative for Congress to act swiftly to prevent the dethroning of the USD as the global reserve currency. The video was addressed to lawmakers in the country, and the executive warned that the US dollar was under threat.
Allaire said that “the dollar’s position of strength is under threat” while adding that the “competition for what money gets used on the internet is increasing.” The Circle executive also highlighted the threat of foreign currencies taking over the USD as the global reserve currency if lawmakers do not take immediate steps.
He noted that “the real question is whether global commerce will happen in digital dollars, digital euros, or digital yuan.” The Circle CEO believes that China can boost the adoption of the yuan via its official central bank digital currency (CBDC), the digital yuan. Allaire claims that the US “has a choice to make” on whether it wants “dollars to be the foundation of currency on the internet” or if it will “let other countries lead the way.”
“If the dollar is to remain the world’s reserve currency, if America is to lead the world economy for the next 10 years and beyond, then we need to build trust in digital dollars and regulate stablecoins today,” Allaire said.
Moreover, the Circle founder claims that cryptocurrencies will “fundamentally change the way we pay for things” in the near future. On the other hand, the founder of crypto venture capital firm Galaxy Digital, Mike Novogratz, seemed to agree with Allaire, asking his followers if they’d rather own a stablecoin that pays a higher interest rate compared to a “bank that looks a lot like a hedge fund.”
Recently, Novogratz said that the listing of a Bitcoin spot ETF will be the SEC’s “seal of approval” for the crypto space. He said that a change at the heart of the SEC or a change in administration is needed.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
