Circle Boss Jeremy Allaire Reveals Potential Stablecoins For China's Trade

Stablecoin published by Circle, USDC coin. (Photo; Doc. beincrypto)

JAKARTA - Jeremy Allaire, CEO of Circle Financial, highlighted the potential benefits of stablecointersing in China's international trade. Although he realizes that stablecoins and CBDCs can complement each other, he believes that stablecoins offer unique advantages in expanding the use of yuan around the world. He stressed the importance of stability and intimacy with fiat currencies offered by stablecoins.

"If in the end, the Chinese government wants to see the RMB used more freely in trading and trading around the world, perhaps stablecoins are way to do more than the central bank's digital currency," Jeremy Allaire told SCMP.

On the other hand, China's adoption of stablecoins may face challenges related to strict policies and restrictions on the transparency of yuan that have been implemented by the government. Substantial changes in the structure of trade settlement will be needed to achieve full conversion.

However, other efforts such as increasing the use of yuan in trading with commodity exporting countries can be a more likely alternative.

Allaire also acknowledged the role of the central bank in developing CBDC and developing a system that utilizes blockchain technology. He mentioned the difference between private sector innovation in the public internet and the role of the central bank in developing CBDC.

"If the central bank is going to improve their own systems to move from old technology to more modern distributed ledger technology, that's great. There are many useful things about it, but I see it is very different from the work done by the private sector to innovate on the public internet," said Allaire.

While China has been at the forefront of CBDC development with trials and pilot programs of digital yuan, Allaire remains optimistic about the development of Web3 technology in Hong Kong and local efforts to regulate stablecoins.

While China has banned crypto-related activities in its country, such as trade and mining, Allaire sees a positive prospect in the development of Web3 technology in Hong Kong. He also appreciates local monetary efforts to regulate stablecoins.