Why Circle Judges the Fears About Stablecoins as "Totally Absurd"

Stablecoins are everywhere. In debates, regulations, investor dinners, and even in Davos. Yes, the topic has risen up to the World Economic Forum, where crypto has been added to the agenda of major discussions. And it is Jeremy Allaire, CEO of Circle, who stepped up. Facing criticism from the banking world, he defended his dollar-backed tokens as a pillar of modern finance, not a threat to it.

Banks in panic, Jeremy Allaire fights back at Davos

In Davos, Jeremy Allaire did not mince his words. Concerns about stablecoin yields? “Totally absurd.” For him, comparing these digital assets to a ticking time bomb is bad faith. Big banks, like Bank of America, have waved the figure of 6 trillion dollars that could flee their vaults if yield-bearing stablecoins were legalized.

But the CEO of Circle reminds us that American money market funds weigh more than 7 trillion and coexist very well with the banking system.

He insists: 

They promote loyalty and strengthen customer attraction… The interest rates are not high enough to weaken monetary policy. 

The issue is not technical: it is political. U.S. legislators are debating the CLARITY Act, which seeks to regulate stablecoins. For Circle, the risk is not destabilizing finance but slowing down its transformation.

From Wall Street to code: how Circle supports the credit evolution

If banks fear Circle, it is because it embodies a profound shift. Global credit is moving from bank balance sheets to capital markets and tokenized finance.

In the United States, Jeremy Allaire recalled: a large part of recent economic growth has been financed by market debt, not traditional loans.

The USDC, flagship stablecoin of Circle, becomes a transitional brick: a bridge between classical finance and the crypto sphere. Its model relies on transparency, compliance, and liquidity, three qualities rarely combined in traditional markets.

This mutation does not destroy banks; it complements them. The physical counter becomes code, and the trust relationship moves to programmable protocols.

Thus, Circle is not a competitor to banks, but a digital ally. Where traditional finance exhausts itself, crypto invents new logics of flow, credit, and profitability.

Circle, AI, and the crypto of machines: a future already underway

In Davos, Jeremy Allaire extended the debate beyond markets. His message: stablecoins are not only made for humans, but also for artificial intelligences. He explained that billions of AI agents will need a native, programmable, and stable means of payment.

In my view, there is currently no alternative to stablecoins to accomplish this.

Jeremy Allaire

The tweets above echo these statements: they describe AI agents as future autonomous economic actors, capable of paying, negotiating, and investing. Circle sees this as obvious: without stablecoins, no economic communication is possible between these digital entities.

To anticipate this era, Circle is building Arch, a blockchain dedicated to exchanges between AI agents and applications. In this vision, the stablecoin becomes the universal language of automated finance.

Stablecoins, AI, and crypto: 5 key takeaways from Davos 2026

• 7 trillion USD: assets of American money market funds, without banking panic;
• 6 trillion USD: bank deposits threatened according to big banks;
• Arch: new blockchain from Circle for AI agents;
• USDC: bridge between regulated finance and the crypto world;
• Allaire, CZ, and Novogratz: all see AI as the future user of stablecoins.

The opposition between banks and crypto is gradually fading. Even David Sacks, an investor from Silicon Valley, states that this separation is coming to an end. The future will be one of hybrid finance, where Circle and traditional institutions will coexist, each contributing to building an economy where code and trust become one.