- Jeremy Allaire said he had no illusions that China was opening up to cryptocurrency.
- However, the Circle co-founder was encouraged by Hong Kong’s embrace of virtual assets.
Circle co-founder and CEO Jeremy Allaire believes that stablecoins pegged to yuan could be better for the Chinese government’s goal of internationalizing its currency, compared to central bank digital currencies (CBDC).
Circle is the issuer of USD Coin [USDC]the second largest USD-backed stablecoin after Tether [USDT].
Allaire made these comments during a interview with the South China Morning Post (SCMP). he revealed,
“If the Chinese government ultimately wants the RMB to be used more freely in trade and commerce around the world, stablecoins may be the way forward to do that more than central bank digital currencies.”
Allaire clarified that while he considers stablecoins superior to CBDCs, the two systems are complementary.
China and Hong Kong look at crypto differently
Regarding China’s ban on cryptocurrency, the CEO of Circle said he has no illusions that the Chinese government is opening up to cryptocurrency. But since Hong Kong is embracing virtual assets, there must be a backing from the Chinese government behind this move.
A local news item mentions that authorities detained the team behind the stablecoins, CNH Coin and HKD Coin, in Shanghai in May.
CNH Coin is a stablecoin pegged to the offshore yuan (CNH). On the other hand, HKD Coin is pegged to the Hong Kong dollar (HKD).
That is what the Hong Kong Monetary Authority (HKMA) has done sworn to implement regulations for stablecoins by 2024. Hong Kong is also participating in a cross-border blockchain pilot for the eCNY.
Allaire said actions by Hong Kong authorities have encouraged the crypto company. Much of Circle’s business now takes place in Asia, the largest market outside the US. The company now has 125 employees on the continent.
