Circle CEO claims stablecoins will soon replace traditional currencies
It is no surprise that Allaire is a strong believer in Bitcoin and is convinced it will play a prominent role in the US banking system in the future. The director of Circle Pay gave his opinion in an interview with Squawk Box comparing the risks surrounding the stablecoin market to those in the traditional banking system.
He pointed out that the structure of the stablecoin market is quite similar to the system of commercial banks. He emphasised that depositing dollars in fiat bank accounts brings many advantages, such as credit systems, asset accumulation and, of course, the freedom to redeem at any time without any risk. He then noted that stablecoins offer similar benefits to investors. According to the Circle Pay director, when stablecoins officially become part of the regulated federal banking system, these similarities will be incorporated into the same marketplace as the benefits of the fiat banking system.
Stablecoins can be risky, but also democratic
Despite his positive view of stablecoins, Jeremy Allaire admits the risks associated with them. However, he stated that this is the essence of any existing payment system. Allaire then stressed that, unlike the traditional banking system, the crypto market requires complete transparency. He also claimed that his company is doing everything possible to ensure that the stablecoin system is safe for the cryptocurrency community.
“We have a regulated system that is specifically designed with consumer protection mandates, and companies are bound to those and examined by those,” said Allaire.
Stablecoins are better than mainstream cryptocurrencies
The Circle’ CEO is convinced that stablecoins are the golden mean. He believes that stablecoin cryptocurrencies have the best qualities of digital assets, such as transparency, but they also comply with the basic rules of fiat currency. He also believes that unlike major cryptocurrencies, which are prone to high volatility, stablecoins provide a relatively secure financial position for users. At the end of the interview, Allaire said that stablecoins really do deserve the trust of their users.
As the cryptocurrency sector has grown, stablecoins could become a more reliable payment method for crypto investors to transfer money between digital exchanges.
Ingénieur de formation, et spécialisé dans les nouvelles technologies, je me suis toujours intéressé à la blockchain et aux cryptomonnaies. Je suis heureux de faire partie de l’équipe CoinTribune.