Circle CEO Says All Fiat Will Be Digitized, Working on USD Coin
Jeremy Allaire, who co-founded the blockchain venture Circle in the year 2013, feels that cryptocurrency truly has a global future ahead. He estimates that every fiat currency, from USD to the yen to the yuan, will soon have a digital version of itself.
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“Our view is that all fiat currency will be crypto,” Allaire explained in a recent interview. “It seems inevitable at this point.”
What Circle Does for Finance
Circle currently offers an app that allows people to send funds to each other at little to no cost. In addition, the venture also grants traders the opportunity to invest in major forms of cryptocurrency like ether and bitcoin, while another app empowers institutional investors. Present backers of the company include U.S. investment group Goldman Sachs and Chinese internet company Baidu.
Allaire says he and the team are already getting the process of digitizing fiat started through the development of what they call USD coin, a new virtual asset that’s attached to the U.S. dollar. This would make it the latest example of a stable coin, and therefore less vulnerable to manipulation, outside influence, and volatility.
How USD Coin Could Help
USD coin would ultimately quicken and enhance dollar-based transactions through blockchain technology, thereby reducing any chances of future price swings. The currency would be subject to stricter financial regulations, and is being constructed through an open-source platform known as CENTRE.
Allaire said he’s hoping USD coin can bring traditional finance processes to the crypto arena, thereby making it more trustworthy and acceptable to the mainstream public.
While discussing stable coins, Allaire mentioned, “We really think of them as core building blocks for a crypto-native global digital economy. Our interest is in how do we take all of the tasks involved in the financial industry and move them onto a crypto-native infrastructure.”
Maybe Stable Coins Aren’t So Stable …
Allaire has also stated that a Euro and British pound coin will be developed after initial production on USD coin is complete.
Stable coins work against price volatility, but they’ve also been the subject of controversy over the last week, particularly Tether, which is allegedly backed by U.S. dollar reserves. University of Texas finance professor John Griffin and graduate student Amin Shams have recently published a new report suggesting that Tether may have been responsible for bitcoin’s price rise to $20,000 USD last December through ongoing manipulation on Bitfinex, one of the world’s largest and most popular cryptocurrency exchanges.
Does digitizing every form of fiat sound like a good idea? Post your comments below.
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