Circle CEO Urges On-Shore Stablecoin Development for the Future of Finance
Resharing Circle's video ad tweet, Jeremy Allaire, the CEO of Circle, emphasized the critical need to accelerate the progress of the digital dollar and Stablecoin development. His message highlights that this advancement is essential for maintaining the strength of the US dollar.
Initially posted in July, Jeremy Allaire was featured in the two-minute video released by Circle aimed at the Congress to safeguard stablecoins and foster confidence in digital dollars.
In the video, Allaire, a prominent figure in the cryptocurrency world, is depicted in a relatable setting—an ordinary American diner sipping on a cup of coffee. This seemingly simple scene sets the stage for a thought-provoking message.
Allaire poses a question that sparks curiosity: "What does a cup of coffee have to do with the future of the global economy?"
As the video unfolds, Allaire delves into an exploration of how cryptocurrency holds the potential to revolutionize the way we conduct transactions. He illustrates this by highlighting crypto's capacity to reshape payment methods for everyday purchases like coffee and more complex transactions like shipping containers and everything in between.
He also tweeted, "Let's eliminate the toll takers. 4% fees to receive a payment, or 3-4% fees and FX to move money worldwide isn't a great business model in the next decade."
The narrative takes an intriguing turn as Allaire points out a significant incongruity: while technology hurtles forward at an astounding pace, one element seems to lag—the concept of traditional money.
Specifically, Allaire singles out the US dollar as an example. He discussed the escalating competition for allocating funds on the Internet. He highlighted that this competition is becoming more intense as the adoption of digital currencies, especially cryptocurrencies, gains momentum.
This impending adoption underscores the necessity for a reliable and secure method of transactions.
"The competition for what money gets used for on the internet is increasing." He continued that the "real question is whether global commerce will happen in digital dollars, digital euros or digital."
Embracing On-Chain Dollars: Navigating the Future of Digital Currencies, Urges Circle CEO, Allaire
While envisioning a future where digital currencies become the predominant medium of exchange within the next decade, Allaire stressed the importance for the United States to navigate this transformative period preemptively.
"Let's build on-chain dollars that are a powerful developer primitive (money lego bricks), that embrace the multichain, dynamic world of DeFi, and span from micro-payments to large-scale capital markets," he tweeted, adding, "Let's build this on shore."
Despite the current advertisement emphasizing the need for regulatory clarity on stablecoins, it's intriguing that Circle's CEO recently highlighted a significant aspect.
He revealed that merely 30% of Circle's Stablecoin (USDC) adoption originates within the United States. Prior to this, Allaire is known to have always indicate the need for a comprehensive framework or established guidelines governing these stablecoins.
Responding to this scenario, the Federal Reserve made a notable move on Tuesday. The central bank issued a statement outlining its intention to guide chartered banks that engage with dollar-pegged stablecoins.
Specifically, the Federal Reserve aims to closely monitor the process of validating transactions, focusing on factors like the timing and conclusiveness of transaction settlements, the potential irreversibility of transactions, and the central authority governing transaction records.