Solomon Samuel 
Regulate Stablecoins to Protect USD Reserve CEO Warns
The status of the United States dollar as a global reserve currency will be jeopardized if Congress does not swiftly regulate stablecoins, the CEO of Circle warns.
On July 13, Jeremy Allaire appeared in a two-minute video for legislators produced by Circle, the issuer of USD Coin. It comes as bipartisan digital asset-specific legislation was reintroduced to Congress on July 12, 2022, more than a year after its initial introduction in June 2022.
“There is a threat to the dollar’s position of resilience. In the video, Allaire emphasized the threat posed by foreign digital currencies by stating that the competition for online currency usage is intensifying.
“The real question is whether global trade will be conducted in digital dollars, euros, or yuan,” he continued. Allaire has previously asserted that stablecoins could increase the adoption and utilization of the yuan in China.
“If the dollar is to remain the world’s reserve currency, if America is to lead the world economy for the next 10 years and beyond, then we need to build trust in digital dollars and regulate stablecoins today.”
He stated that the United States “must decide” if it wants “dollars to be the foundation of internet currency” or if it will “let other countries lead the way.”
In his argument for regulating stablecoins, Allaire asserted that cryptocurrencies will “fundamentally change the way we pay for things.”
Mike Novogratz, the proprietor of crypto investment firm Galaxy Digital, appeared to concur with Allaire. On July 13, he asked his Twitter followers rhetorically if they would rather own a stablecoin with a higher interest rate than a “bank that looks a lot like a hedge fund.”
“The answer is obvious,” said Novogratz. “I hope that U.S. legislators will support the development of well-regulated stablecoins as opposed to opposing it.”
The status of the United States dollar as a global reserve currency will be jeopardized if Congress does not swiftly regulate stablecoins, the CEO of Circle warns.
