According to Jeremy Allaire, CEO of stablecoin issuer Circle, the United States must embrace stablecoin laws and digitize the US dollar (USD) to counteract the “very active de-dollarization taking place” around the world right now.
Allaire’s remarks at the Consensus 2023 conference on Wednesday, April 25, were made in light of the recent banking crisis in the United States. The CEO of Circle, the stablecoin issuer behind USD Coin (USDC), urged Congress and the Federal Reserve to act, otherwise alternative currencies and payment systems would continue to erode the dollar’s dominance:
“There is a very active de-dollarization going on.” You’re seeing very significant reactions to US risks in the banking system, risks with the US government, a geopolitical imposition on many parts of the world, and a desire for alternative payment systems all over the world. “This is happening and it’s accelerating,” he added.
For the USD to stay “competitive” and “safe” in the internet era, Allaire believes the US should pass stablecoin legislation soon and the Federal Reserve should include the digital dollar into its “core systems” to capitalize on global demand:
“Demand for digital currencies such as USDC is extremely global.” We see that demand all across the world — in emerging economies, in markets where individuals want to hold a digital dollar as opposed to their local banking system […] as an efficient medium of exchange for various forms of international transactions.”
If the US government does not get its act together, Allaire believes it will be a “giant missed opportunity” for the country. According to Reuters, the Chinese yuan surpassed the US dollar in cross-border transactions in China for the first time in March.
Circle has now taken some responsibility into its own hands by launching USDC on the Cross-Chain Transfer Protocol (CCTP). The new solution, according to Allaire, is the “most important new piece of blockchain infrastructure” since the company began minting and distributing USDC in 2017.