The Circle CEO said that it’s time for the US to build on-chain dollars and embrace the multichain future, otherwise, the reserve currency could lose market share to China and Europe.
Circle CEO Jeremy Allaire recently shared a video on his Twitter handle while enjoying a cup of coffee and an American dinner. The Circle chief touched upon the changing dynamics of the global economy and the role of the US Dollar (USD).
“What does a cup of coffee have to do with the future of the global economy,” he asks. Later, he moves towards explaining crypto’s ability to “fundamentally change the way we pay for things,” with a wide scope from buying coffee to making large cross-border payments, and everything in between.
Allaire revisits the well-known analogy of the transition from dial-up internet in the late 1990s to today’s interconnected world of smartphones and artificial intelligence. However, according to Allaire, there’s one aspect that hasn’t kept pace with this technological progress: money, especially the US dollar. The Circle CEO adds:
“In today’s global economy, the dollar’s position of strength is under threat,” asking if the United States wants “dollars to be the foundation of currency on the internet or digital euros or yuans?”
This means that the Circle CEO has been questioning the slower progress by the United States in digitizing its Dollar while other major economies are already working on it actively.
Circle CEO: Let’s Bring USD On-Chain with Regulatory Rules
The CEO of Circle has been actively working to establish regulations for stablecoins such as Circle’s USDC and its main competitor USDT, as well as PayPal‘s recently introduced PYUSD, within the United States. Allaire noted:
“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. Let’s build this ON SHORE, and have the world know that the regulators of the biggest markets in the world (US, Japan, EU, Singapore, HK, UK, UAE) are ensuring that these are safe, transparent and supervised to bank-grade risk management standards”.
However, US lawmakers have been in strict opposition to stablecoins and have shared several concerns about it. In recent times, US Senator Elizabeth Warren has been at the forefront of the push against cryptocurrencies. Just two days ago, she reintroduced a bill containing various regulations, including a requirement for crypto users to report transactions exceeding $10,000.
Additionally, the Federal Reserve made a statement on Tuesday, outlining potential fresh guidelines for banks involved with stablecoins tied to the US dollar, such as Allaire’s USDC.
The central bank of the United States is aiming to enhance transaction monitoring, introduce reversible transactions, and strengthen regulations for cryptocurrency companies.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.