Allaire: Digital Dollars Are Critical

Jeremy Allaire, CEO of Circle, the issuer of the second-largest stablecoin, USDC, is speaking out loud these days. The American company is rebelling against the continued pressure on other crypto companies. Jeremy, who has said many times that this attitude of the country hinders innovation and threatens the future of the United States, is not alone. The CEO of Coinbase, the largest cryptocurrency exchange in the country, says similar things.

Allaire, who gave a new interview at the Currency in the Crossfire event organized by Foreign Policy magazine, says that more decisive steps have been taken than in the past to move away from the US dollar as the reserve currency and trade exchange of the nations:

There’s been a long-standing theme of de-dollarization and people talk about it every 10 years. And people say it’s not really going to happen. I think we’re in a really different place right now. It is impossible not to hear about different attempts to express different types of trade in alternative currencies on the news every day, or efforts to establish new alternative payment systems. I think this is part of the emerging multipolar world; There is a desire to have an autonomy outside of the dollar. There are concerns about armament. There are concerns about what could happen if you are not on the right side of the United States. And that’s a concern that drives things. There are concerns about the indebtedness of the United States government, which is a concern for people holding T-bills and the like for the very long term. So you’re seeing some of these changes. You see the reserve status has changed and so on.

Circle’s CEO, Jeremy Allaire, thinks these studies may affect the fate of the dollar in the long run. The CEO of the USD Coin (USDC) stablecoin issuer continues to say that while de-dollarization is something that could take decades, it is not something to be ignored.

It’s important not to exaggerate this, because these are things that have happened over decades. But I think this is also very critical because we are going through a period where everything feels very different. Worldwide restructuring is real. This is a political and economic situation and a reality. So the efforts to create these alternative systems are more real than they’ve ever been in the past… “Well, that won’t be challenged for long,” you might say. But it’s like a frog in boiling water, and I think you have to decide when to get out. And what to do about it.

For the US, crypto is essential for even more widespread use of the dollar and its stability in the next century. Stablecoins are today a virtual asset in the hands of people around the world who do not have access to physical dollars. Most people today who don’t have a physical dollar have USDT or USDC in their wallet. So embracing US regulation of stablecoins will be vital to the future of the reserve currency. This is exactly what Allaire thinks:

From my point of view, digital dollars, having solid regulation around this industry and making digital dollars an export product to the internet and the world is really critical to competitiveness right now.