Circle CEO Jeremy Allaire says the competitiveness of the US dollar is facing unprecedented threats as cryptocurrency progresses in other countries.
In a new interview with Bloomberg Television, Allaire says the US Congress must pass pro-crypto legislation to ensure the country benefits from blockchain innovation.
As major economies push to move away from the U.S. dollar to settle transactions, Allaire says one way to protect the U.S. dollar’s dominance is to let fiat-pegged stablecoins like Circle’s U.S. Dollar Coin (USDC) flourish.
“It is a critical moment here in the US. And, as I like to say, it really is a time for Congress to step forward. And we now have a situation where there are questions about the competitiveness of the US dollar. There are efforts in many parts of the world to de-dollarize the dollar and we have a technological revolution happening with blockchain technology.
We have big jurisdictions like the European Union with 800 million people, progress [on crypto regulations] in Hong Kong, Singapore, in the Middle East and other markets, and the US is currently lagging behind and the dollar is, I think, under more serious threat than ever before.
And so our view is that it’s vital that Congress act, that it act to pass legislation that can help the dollar stay competitive in this era of Internet-based currencies. And that’s really what I think some of these bills that have been discussed in the House over the past few days are doing.”
Allaire also says he believes the US Congress should pass legislation to allow stablecoins like USDC to be held at the central bank and invested in things like treasury bills (T-Bills).
“We have long thought that the right architecture for money on the internet would be the kind of base layer of a digital dollar to be as safe as possible. So something that can be kept at the central bank or short term T-Bills and other things. And if you had that and you had a way to regulate that on a federal level, that would be an ideal kind of framework for a company like Circle and for a digital currency like USDC. And so we continue to push for that and pursue that.
And I think, again, the road to that will really be Congress building a framework for this alongside other major jurisdictions in the world that have created these avenues for these innovations and how fiat money is going to work on the internet.”
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