Cryptocurrency Legislation is Crucial for the US Dollar’s Future – Jeremy Allaire
In a recent Bloomberg Television interview, Circle CEO Jeremy Allaire expressed concerns about the competitiveness of the US dollar in the face of cryptocurrency advancements in other countries.
According to Allaire, Circle’s USDC and other stablecoins pegged to fiat currencies could play a vital role in safeguarding the US dollar’s dominance, especially as more significant economies begin to shift away from it for trade settlements.
Allaire highlights ongoing efforts in many regions worldwide to reduce the US dollar’s role in international transactions, and the US’s progress in regulating cryptocurrencies lags behind. He believes the current technological revolution in blockchain poses more substantial threats to the US dollar than ever before.
To overcome these difficulties, Allaire recommends that Congress enact a law permitting stablecoins, such as USDC, to be held by the central bank and invested in Treasury Bills.
Allaire argues that the best model for Internet currency would be a fundamental layer of digital currency that is as secure as possible. If stablecoins like USDC were regulated at a federal level, it would establish an excellent structure for a company like Circle and a digital currency like USDC.
Allaire believes that Congress must establish a cryptocurrency framework in conjunction with other leading jurisdictions in the world that have established pathways for these advancements.
He believes that some of the proposed bills currently under discussion in the House could assist the US dollar in remaining competitive in the current era of internet-based currencies.
Allaire believes that, given the doubts about the competitiveness of the US dollar, it is a crucial moment for Congress to take action.