Circle CEO spells doom scenario for US dollar in warning to Congress

Circle CEO warns that the US dollar’s status as the global reserve currency will be threatened if Congress does not quickly regulate stablecoins.

On July 13, Jeremy Allaire appeared in a two-minute video for lawmakers by the USD Coin (USDC) Issuer Circle.

This comes after the bipartisan, digital-asset-specific bill, originally submitted over a year ago in June 2022, was reintroduced to Congress on July 12.

“The dollar’s position of strength is threatened. Competition is intensifying over what money is spent on the internet,” Allaire argued in the video, citing the threat of foreign digital currencies. emphasized.

What does a cup of coffee have to do with the future of the global economic system? As the U.S. Congress prepares for its first vote on the Stablecoin Act, U.S. political leaders weigh in on the competitiveness of the U.S. and the dollar. are forced to make a choice about Video for political leaders below. $USDC pic.twitter.com/9sQyZwq4WE

— Jeremy Alea (@jerallaire) July 13, 2023

“The real question is whether global commerce is done in digital dollars or digital euros and renminbi,” he added. Allaire has previously argued that China could facilitate the adoption and use of the renminbi through stablecoins.

He said the U.S. “will have to choose” whether to “base the dollar on the Internet” or “let other countries take the lead.”

“If the dollar remains the world’s reserve currency, if the U.S. is to lead the global economy for the next decade and beyond, we need to build trust in the digital dollar now and regulate stablecoins.”

In his argument for stablecoin regulation, Allaire argued that cryptocurrencies would “fundamentally change the way we pay for things.”

Related European Banking Authority Calls for Early Adoption of Stablecoin Standards

He added that “billions” of people will use cryptocurrencies as traditional financial payments take “days” and fees amount to “almost a trillion dollars tax on the global economy.”

Would you rather have a US Treasury-backed stablecoin that pays as much as 5% interest, or a bank deposit that looks a lot like a hedge fund that pays 2%? I hope that U.S. lawmakers will support the development of well-regulated stablecoins, rather than against them.

— Mike Novogratz (@novogratz) July 13, 2023

Mike Novogratz, founder of crypto investment firm Galaxy Digital, also seems to agree with Allaire. On July 13, he rhetorically asked his Twitter followers if they would want to own a stablecoin that pays higher interest than a “bank that looks a lot like a hedge fund.”

The answer is clear,” Novogratz said. “We hope that U.S. lawmakers will support the development of a well-regulated stablecoin rather than oppose it.”

opinion: Republican Crypto Maximalism Is Almost As Bad As Democrats’ “Anti-Crypto Legion”