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Circle CEO: Stablecoins will ‘open up richer forms’ of economic interactions

Chayanika Deka

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While stablecoins has been a hot topic of discussion, Jeremy Allaire, CEO of Circle sees the potential of a stablecoin running on, what he calls, “a public internet”.

In a recent interview with Fast Company, against the backdrop of the World Economic Forum 2020, the Circle exec said,

“When you have stablecoin that runs on the public internet, it has the reach of the internet and therefore really anyone with a smartphone, who can download a digital wallet software that can speak the open protocols of blockchain, can connect to their other dimensions as well.”

According to Allaire, the long-term and lasting impacts wouldn’t just be the ability to move money around the same way as a text message but much more than that. It would enable individuals to understand the ‘deeper promise of blockchain’. He elaborated,

“..it is the deeper promise of blockchain which is, what people say, ‘programmable money’. What that really is that individuals and firms are going to be able to enter into economic contracts with each other where the contracts are absolutely enforced and run on the internet in a trustless way.”

According to him, this will not only “open up much richer forms” of economic interactions on a global basis for everyone, everywhere, but will also be a “powerful message” in terms of ultimate financial inclusion.

In line with this vision, Circle along with crypto exchange Coinbase had earlier announced the ‘Centre’ consortium to bolster adoption of stablecoins backed by fiat currencies and develop stablecoin USDC which unlike Tether, is regulated.

Stablecoins aims to solve the inherent issue of volatility in cryptocurrencies. While stablecoins did come under a cloud of suspicion after the whole Tether-Bitfinex fiasco, nevertheless, many organizations have jumped on the stablecoin bandwagon, the latest being, the NY-based asset manager, WisdomTree which was reportedly looking into creating a regulated stablecoin.

Chayanika is a full-time cryptocurrency journalist at AMBCrypto. A graduate in Political Science and Journalism, her writing is centered around regulation and policy-making regarding the cryptocurrency sector.