United States Must Implement Stablecoin Legislation and Digitize the U.S. Dollar, Says Circle CEO
Jeremy Allaire, the CEO of Circle, a stablecoin issuer behind USD Coin (USDC), has called on the U.S. Congress and the Federal Reserve to implement stablecoin legislation and digitize the U.S. dollar to meet the high demand for digitally native U.S. dollars. Allaire emphasizes that emerging economies with weak local banking systems are particularly interested in the digital dollar. He made these comments during the Consensus 2023 conference on April 26.
The Need for Stablecoin Legislation and Digital Dollar
Allaire stresses that the U.S. must take action to mitigate the “very active de-dollarization taking place” globally. He points out that the recent U.S. banking crisis has triggered reactions and geopolitical impositions on many parts of the world, leading to a desire for alternative payment systems. To remain competitive and safe in the internet era, Allaire says the U.S. needs to lay out stablecoin legislation urgently. The Federal Reserve must implement the digital dollar into its core systems to capitalize on the high demand worldwide. Allaire believes that the demand for digital dollars like USDC is highly global and will continue to increase, particularly in emerging markets. The digital dollar serves as an efficient medium of exchange for various types of international transactions.
The Consequences of Inaction
Allaire warns that failure to take action will result in a “giant missed opportunity” for the U.S. The call for action comes as the Chinese yuan overtook the dollar for cross-border transactions in China for the first time in March, according to Reuters.
Circle Takes Responsibility into Its Own Hands
Circle has launched USDC on Cross-Chain Transfer Protocol, taking responsibility into its own hands. Allaire believes that this new solution is the “most important new piece of blockchain infrastructure” since the firm began minting and issuing USDC in 2017.
Conclusion
In conclusion, the U.S. needs to implement stablecoin legislation and digitize the U.S. dollar to meet the high demand for digitally native U.S. dollars worldwide. Failure to take action will result in missed opportunities for the U.S. and could lead to alternative payment systems dominating the market. Circle has taken responsibility by launching USDC on Cross-Chain Transfer Protocol, which Allaire believes is a crucial piece of blockchain infrastructure.
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