Jeremy Allaire, CEO of stablecoin issuer Circle, said the US must implement stablecoin legislation and digitize the US dollar to ease the current “very active de-dollarization process” around the world.
Allaire's comments at the Consensus 2023 conference on April 26 were made in response to the recent US banking crisis. CEO of Circle - the stablecoin issuer behind USD Coin - Calls on Congress and the Federal Reserve to act, otherwise, alternative currencies and payment system s will continue to erode the dollar's dominance: "We're doing a very aggressive de-dollarization. You have a very significant response to the US risk in the US banking system, the US government itself, the geopolitical imposition in many parts of the world [ and] the desire for alternative payment systems around the world.”
"It's happening, and it's accelerating," he added. In order for the US dollar to remain “competitive” and “safe” in the internet age, Allaire said the US needs to enact stablecoin legislation immediately, and the Federal Reserve needs to incorporate digital dollars into its “core system” to take advantage of high global demand: "The demand for a digital dollar like USDC is highly global. We see it all over the world we see it in emerging markets, where people want to hold a digital dollar instead of a local bank." This demand is seen in the market for the system to trade as an efficient medium of exchange for various types of international currencies."
Allaire emphasized that if the US government does not pull together, it will be a "huge missed opportunity" for the country. The call to action came after the yuan surpassed the dollar in Chinese cross-border transactions for the first time in March, Reuters reported. Circle recently took on some responsibility, launching USDC on a cross-chain transfer protocol.
Allaire said the new solution is “the most significant new piece of blockchain infrastructure” since the company began minting and issuing USDC in 2017.
