Circle CEO warns of active and accelerating de-dollarization
The United States must implement stablecoin legislation and digitize the U.S. dollar (USD) to mitigate the “very active de-dollarization taking place” around the world right now, says Jeremy Allaire, the chief executive of stablecoin issuer Circle.
Allaire’s comments at the Consensus 2023 conference on Wednesday, April 25, were made in light of the recent U.S. banking crisis.
The Circle — the stablecoin issuer behind USD Coin (USDC) — CEO called on Congress and the Federal Reserve to take action otherwise alternative currencies and payment systems will continue to eat into the dollar’s dominance:
“This is happening and it's accelerating,” he added.
For the USD to remain “competitive” and “safe” in the internet era, Allaire says the U.S. needs to lay out stablecoin legislation imminently and the Federal Reserve needs to implement the digital dollar into its “core systems” to capitalize on the high demand around the world:
If we want to make the dollar safer and more competitive, we need to do two things:- unleash it's power as a native data type on the internet, that can be openly used and integrated- remove the underlying bank lending IOU risk on electronic money, and separate payment tokens… https://t.co/DThvu8Dt25
If the U.S. government doesn’t get its act together, this will be a “giant missed opportunity” for the country, Allaire stressed.
Related: US Bank collapse — Is crypto being targeted?
The call for action comes as the Chinese yuan overtook the USD for cross-border transactions in China for the first time in March, according to Reuters.
Chinese Yuan overtakes US dollar as most-used currency in China's cross-border transactions for the first time in history.Yuan-share rose to a record high of 48%, UP from nearly
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