Yuan Digital Threatens US Dollar Domination, Circle CEO Jeremy Allaire: United States Must Make Blockchain-Based Digital Dollars!

Circle founder Jeremy Allaire. (Photo; Doc. Caricoin)

JAKARTA - Circle CEO Jeremy Allaire expressed his views on the future of the global economy and the role of cryptocurrencies in changing traditional financial systems.

Allaire underlined the importance for the United States to build blockchain-based digital dollars (known also as "dolar on-chain") to deal with technological developments and global competition.

In a video he shared on Twitter, Allaire raised the question of whether the United States wants to maintain its dominance of the US dollar in the digital economy or provide space for digital yuan from China and digital euros from Europe.

Allaire argues that the power of the US dollar in the global economy is under threat, and he encourages the United States to be more active in embracing the development of cryptocurrency technology. He also stressed the need to digitize the US dollar by complying with strict rules and regulations.

CEO Circle has long sought to establish clear regulations for stablecoins like USDC. Allaire stated that the dollar on-chain could be a strong basis for building a dynamical decentralized financial ecosystem (DeFi) consisting of a wide range of blockchain networks. It also highlights the need for supervision and strict regulation from regulators in the world's largest market.

Despite Allaire's positive views on the dollar on-chain, US lawmakers, such as Senator Elizabeth Warren, have raised concerns about cryptocurrencies and stablecoins.

In fact, the Federal Reserve is also considering new regulations for cryptocurrencies related to the US dollar. This shows that there is still a boost for innovation and technological developments. There are also challenges and regulatory questions that must be answered on the way to a wider digital dollar in the future.