Circle CEO Jeremy Allaire reportedly thinks stablecoins will become a regulated financial network around the world.
Allaire says in a new interview with the South China Morning Post (SCMP) that Circle is acting as a test subject for global stablecoin regulation.
According to Allaire, stablecoin regulation is still in its infancy and the asset class will eventually witness regulatory clarity around the world.
“As I like to say, we are kind of a global regulatory guinea pig for stablecoins, in the sense that we are a regulated player, and we always have been. We are adopted worldwide. Our vision is that this will become a regulated financial infrastructure everywhere in the world.”
Circle issues USDC, the second largest stablecoin by market capitalization.
The stablecoin issuer’s CEO also states that stablecoins will help streamline cross-border settlements.
“The more you have those different fiat currencies online with stablecoins, the more…seamless cross-border and FX (foreign currency) transactions and programmable compounding finance can become. We want to be one of the most popular dollar stablecoins, but there will certainly be more than just Circle.”
Allaire says USDC will help with trading arrangements in Hong Kong, but not in China, where crypto mining and trading are banned.
“I don’t see a direct role for Circle there. However, I do believe that we will see offshore stablecoins grow… and that we will see a truly robust market for stablecoin FX and seamless convertibility.”
USDC aims for a 1:1 peg to the US dollar and has a market capitalization of approximately $35 billion at the time of writing.
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