Jeremy Allaire, CEO of stablecoin giant Circle, spoke at Consensus 2023 on Wednesday about where companies like his fit into the current US dollar system and regulatory regime.
The executive believes a widespread loss of faith in US Banking is contributing to “de-dollarization”, and that digital dollar stablecoins will help it retain its global dominance.
A Safe Digital Dollar
During a panel titled “ A 10-Year Rollercoaster Toward a New Model of Money,” Allaire said that the collapseof Silicon Valley Bank (SVB) in March was a mere reminder of why Circle and other crypto firms were founded 10 years ago.
“It was a reaction to the global financial crisis of 2008,” he said. “ I personally spent a huge amount of time trying to understand the nature of money, how the banking system [works], the international monetary system – and that was before I had any sort of knowledge of Bitcoin or any of this,” he said.
Bitcoin’s whitepaper was published in 2008 as numerous massive bank failures in the United States left taxpayers footing the bill for risky decisions investment banks made with customer money. The network was the first of its kind to allow for trustless peer-to-peer payments in a digital manner, from which many more cryptocurrencies have followed.
Allaire noted that the idea of “sound money” permeates the crypto space a great deal, and that Circle’s idea was to introduce that to the world of fiat currency — in digital form. “That would dramatically change both the underlying safety of money, and open up extraordinary new opportunities for how you can arrange economic activity and financial activity,” he said.