Circle CEO Suggests Immediate Stablecoin Regulation Against Rising De-Dollarization
- The CEO of Circle, Jeremy Allaire, urged the United States Congress and the Federal Reserve to lay the foundation of stablecoin regulation.
- The executive asked the US authorities to implement the digitalization of the US dollar due to the “very active de-dollarization taking place.”
- Allaire asked the Federal Reserve to integrate the digital dollar into its “core systems” and capitalize on the heavy stablecoin demand.
- Recently, the issuer of USDC listed 18 principles that it had formed as part of its campaign to influence stablecoin legislation in the US.
The United States dollar is rapidly losing its credibility around the globe as numerous countries have come together to renounce the leading fiat currency and adopt their own native currencies for trade activities worldwide. This event, termed “de-dollarization, has attracted the attention of the crypto space and prominent figures in the industry like the CEO of Circle, Jeremy Allaire, who claims that de-dollarization is acceleration.
According to Allaire, it is imperative for the United States to enact stablecoin regulations and implement the digitalization of the US dollar because of the “very active de-dollarization taking place.” These comments came from the Circle CEO at the Consensus 2023 conference on April 26 in light of the recent banking crisis that took place in the US.
The CEO of Circle, the company responsible for the creation and development of the second-largest stablecoin by market capitalization, the USD Coin (USDC), urged the US Congress and the Federal Reserve to take action or else alternative currencies and payment systems will continue to dominate the US dollar.
“We have a very active de-dollarization taking place. You’re having very significant reactions to the U.S. risks in the U.S. banking system, risks with the U.S. government itself, a geopolitical imposition on many parts of the world [and] the desire for alternative payment systems all around the world,” said the Circle executive.
“This is happening and it’s accelerating,” said the Circle CEO while talking about the United States dollar losing its dominance and alternative payment systems taking its place. Allaire added that it is very important for the US dollar to remain relevant, “competitive,” and “safe” in the internet era.
The Circle executive further said that the US needs to lay the foundations of stablecoin regulation immediately if it wants to retain the dominance of the US dollar. He asked the Federal Reserve to integrate the digital version of the US dollar into its “core systems” and capitalize on the heavy stablecoin demand in the country as well as outside the US.
“The demand for digital dollars like USDC is highly global. We see that demand all around the world — we see it in emerging markets, we see it in markets where people want to hold a digital dollar versus their local banking system […] as an efficient medium of exchange for various types of international transactions.”
As reported earlier by BitcoinWisdom, billionaire tech investor Chamath Palihapitiya recently stated that “crypto is dead in America,” while adding that US authorities have “firmly pointed their guns at crypto” and blame digital assets for the recent banking crisis.
“I think it’s probably not a coincidence that you’re seeing all these concerns about de-dollarization at the same time they’re cracking down on crypto,” Sack said, referring to the recent actions taken by Russia and China to dethrone the USD’s dominance in global trade.
It is also important to mention here that Dante Disparte, the chief strategy officer of Circle and head of global, recently listed the 18 principles the firm had formed as part of its campaign to influence stablecoin legislation in the United States.