Jeremy Allaire, CEO of Circle, has raised concerns about the United States dollar’s global reserve currency status, warning that it could be in jeopardy if stablecoins are not properly regulated. Allaire called on lawmakers to pass stablecoin regulations in order to establish trust in a digital dollar.
In a video released by Circle on July 13, Allaire emphasized the increasing competition for digital currencies and highlighted the potential influence of foreign digital currencies on global commerce. He stated that the United States faces a choice regarding the role of the dollar in the digital economy, whether it will be the foundation of online transactions or if other countries will take the lead.
To maintain the dollar’s position as the world’s reserve currency and ensure the United States continues to lead the global economy, Allaire argued that trust in digital dollars must be established through the regulation of stablecoins. He emphasized that cryptocurrencies have the potential to revolutionize payment systems, offering faster transactions and lower fees compared to traditional financial methods, which impose significant costs on the global economy.
Allaire’s call for stablecoin regulation was supported by Mike Novogratz, founder of crypto investment firm Galaxy Digital, who expressed his agreement on Twitter. Novogratz posed a rhetorical question to his followers, asking if they would prefer owning a stablecoin that offers higher interest rates than a bank resembling a hedge fund. He advocated for the development of well-regulated stablecoins and hoped that U.S. lawmakers would support this initiative.
The reintroduction of bipartisan digital asset-specific legislation to Congress on July 12 reflects the ongoing discussions and efforts to address the regulatory framework surrounding stablecoins and digital currencies in the United States.
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