Circle CEO Jeremy Allaire says that the US dollar’s competitiveness faces unprecedented threats as cryptocurrency advances in other countries.
In a new Bloomberg Television interview, Allaire says that US Congress should pass pro-crypto legislation to ensure the country benefits from blockchain innovation.
As large economies push to move away from the US dollar to settle trades, Allaire says one way to protect the US dollar’s dominance is to allow fiat-pegged stablecoins like Circle’s US Dollar Coin (USDC) to flourish.
“It’s a critical moment here in the US. And, as I like to say, it’s really a moment for Congress to step up. And we have a situation right now where there are questions being raised about the competitiveness of the US dollar. There are de-dollarization efforts that are underway in many parts of the world and we have a technological revolution that is taking place with blockchain technology.
We have major jurisdictions like the European Union with 800 million people, progress [on crypto regulations] in Hong Kong, Singapore, in the Middle East and in other markets, and the US is behind right now and the dollar is facing, I think, more severe threats than it ever has.
And so our view is that it’s vital that Congress act, that it act to pass legislation that can help the dollar remain competitive in this age of internet-based currencies. And that’s really what I think some of these draft bills are doing that have been discussed within the House in recent days.”
Allaire also says he believes US Congress should pass legislation to enable stablecoins like USDC to be held with the central bank and invested in such things as Treasury Bills (T-Bills).
“We have long held that the right architecture for money on the internet would be the kind of basic layer of a digital dollar to be as close to as safe as possible. So something that could be held with the central bank or in short duration T-Bills and other things. And if you had that and you had a way to regulate that at a federal level, that would be an ideal kind of framework for a company like Circle and for a digital currency like USDC. And so we continue to push for that and pursue that.
And I think, again, the path towards that is really going to be that Congress needs to build a framework for this alongside other major jurisdictions in the world that have created these pathways for these innovations and how fiat money is going to work on the internet.”
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