Circle CEO: USD is “under threat”, Congress must regulate stablecoins

Circle CEO Jeremy Allaire has urged legislators to regulate stablecoins and “build trust” in a digital dollar because the USD’s position as the global reserve currency is at risk, Cointelegraph reported. Circle issues USD Coin, which is the second-biggest stablecoin by market cap.

Foreign digital assets are a threat

In a short video aimed at legislators, Allaire said competition for what people spend money on online is getting severe, drawing attention to the threat of foreign digital currencies. He made the video on occasion of Congress reintroducing digital asset-specific legislation on July 12. It was originally tabled last year.

The currency of global commerce

He asked the rhetoric question of what digital currency global commerce would happen in: digital dollars, digital euros, yuan, etc. He has said China could increase adoption and use of the yuan through stablecoins.

He insisted in the video:

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.

Circle’s CEO argues that crypto would transform payments. At the moment, money transfers can take up to several days. The fees on traditional transfers amount to almost one trillion dollars. He said “billions” of people would start using crypto if it were adequately regulated.

Novogratz expressed support for stablecoins

Mike Novogratz, the founder of crypto investment firm Galaxy Digital, apparently agreed with Allaire. On July 13, he asked his Twitter followers what they would choose: owning a high-interest stablecoin or holding money at a bank that was similar to a hedge fund.

Novogratz added he hoped US legislators would help develop well-regulated stablecoins instead of fighting their inevitable adoption.