Paxos CEO says: Trust is the key to general acceptance of Stable

Charles Cascarilla, CEO of Paxos, believes that stablecoins need solid regulation in order not to be just a tool for crypto enthusiasts and gain widespread acceptance.

Speaking to Bloomberg, Cascarilla explained that without regulation, stablecoins could not build trust, which is crucial in attracting interest from outside the crypto community. Without regulation, you cannot change the financial system in the long term, he said.

In essence, stablecoins enable more inclusion, explained Cascarilla, adding that stablecoins open up a new way of moving money. “But at the same time you want supervision.”

He acknowledged that regulations can be a barrier in the early stages of a project, but said, “There’s a real difference between building from the start and building with a full mindset.” While it might work in other industries, it is not the right approach to use in a highly regulated industry like financial services, he said.

Speaking of money laundering concerns raised by regulators regarding stablecoins, Cascarilla noted that the number one currency used to launder money is physical US dollars.

In contrast, “a stablecoin enables you to understand every step of the way,” he said, adding:

“It’s open to the public. It pretends to be. Everyone knows the height of the move. And they are fully testable forever. “

Cascarilla said that ideally, a central bank should be the issuer of future stablecoins. “But before that there are still a lot of discoveries to be made. The market needs to know what works and what doesn’t. Regulated is a way of showing what works. “

Paxos is known for its regulation-friendly development. Earlier this year, the US Office of the Comptroller of the Currency Paxos issued a federal charter to establish a national trust bank. Recently, Bank of America joined the Paxos Settlement Service to process securities transactions.