Circle CEO Predicts Global Shift Away From USD – Be Prepared!
- The Circle CEO warns of “very active de-dollarization taking place” globally.
- Stablecoin legislation and digitizing the US dollar are necessary to remain competitive and safe in the internet era.
- The demand for digital dollars like USDC is increasing globally, and Circle has launched USDC on Cross-Chain Transfer Protocol (CCTP).
During the Consensus 2023 conference, Jeremy Allaire, CEO of Circle, the stablecoin issuer behind USD Coin (USDC), emphasized the importance of the United States implementing stablecoin legislation and digitizing the U.S. dollar (USD) in response to the “very active de-dollarization taking place” around the world right now.
Allaire’s comments were made in light of the recent U.S. banking crisis, which has led to significant reactions to the U.S. risks in the U.S. banking system, risks with the US government itself, and geopolitical impositions on many parts of the world. As a result, there is a desire for alternative payment systems around the world. Allaire warns that if the United States doesn’t take action, alternative currencies and payment systems will continue to eat into the dollar’s dominance.
According to Allaire, the USD needs to be digitized and stablecoin legislation needs to be laid out imminently to remain “competitive” and “safe” in the internet era. He calls on Congress and the Federal Reserve to take action and implement stablecoin legislation and the digital dollar into its “core systems” to capitalize on the high demand around the world. Allaire notes that the demand for digital dollars like USDC is highly global, with demand seen in emerging markets and 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.
Allaire stresses that if the United States fails to take action, it will be a “giant missed opportunity” for the country. The call for action comes as the Chinese yuan overtook the USD for cross-border transactions in China for the first time in March, according to Reuters.
In response to the situation, Circle has taken some responsibility into its own hands by launching USDC on Cross-Chain Transfer Protocol (CCTP), which Allaire says is the “most important new piece of blockchain infrastructure” since the firm began minting and issuing USDC in 2017.
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