Circle CEO Jeremy Allaire: Stablecoin Is An Important Factor In Digital Economy Development

Jeremy Alleire, CEO of Circle. (Photo; Doc. Livecoins)

Stablecoins are a type of cryptocurrency designed to maintain its value stably. The value of stablecoins is tied to more stable assets such as fiat currency or precious metals. Stablecoins are widely used as a medium of exchange, a store of value, and a counting unit in the crypto world, which often experiences high price fluctuations.

One of the largest stablecoin publishers in the crypto market is Circle, a financial technology company founded in 2013 by Jeremy Allaire and Sean Neville. Circle issued a stablecoin called USD Coin (USDC), whose value is always equivalent to one to the US dollar (1 USDC = $1).

Allaire, who serves as CEO of Circle, is very optimistic about future stablecoin prospects. In an article written for the World Economic Forum meeting at Davos, Switzerland, in January 2024, Allaire stated that stablecoins will be the axis of a new blockchain-based economic system, a technology that enables recording transactions decentralized, transparent, and securely.

According to Allaire, 2024 is the year where interest in blockchain networks peaked, with many traditional financial institutions such as Blackrock, JPMorgan, Standard Chartered, HSBC, and Goldman Sachs announcing their involvement in blockchain-based projects. Citing Coingape, Allaire sees this interest as a support for technology "ready to change the financial world."

Allaire explained that stablecoins will be a central part of all of these activities, given the stablecoin capabilities ranging from traditional commercial use to transfer value to people who do not have access to banking systems, such as Ukrainian refugees or Venezuelan health workers. Allaire also highlighted the potential for stablecoins to support financial inclusion, economic democratization and social innovation.

The evolution of this network and its memotorial technologies allow inexperienced people in this area to use stablecoins without having to deal with their complexity. Allaire stressed that these developments "open the way for a future where billions of people will interact with the internet's financial system every day without the need to understand how it works."

Circle recently completed its USDC stablecoin upgrade to version 2.2. This upgrade brings new features such as USDC's ability to burn (burn), send USDC offline, and integrate USDC with popular DeFi (Decentralized Finance) protocols. It doesn't stop there, Circle also plans to go public and has submitted licensing documents for Initial Public Offering (IPO) to the US Securities and Exchange Commission (SEC).