Circle CEO: Stablecoins Can Strengthen US Dollars If Used As US Export Products

USDC stablecoin value is pegged to US dollar value. (Photo; Doc. CoinMarketCap)

JAKARTA - In recent months the issue of de-dolarization has strengthened. Therefore, as an effort to strengthen the position of the US dollar, stablecoin crypto assets can be the solution. Circle CEO Jeremy Allaire believes that stablecoins pegged to US dollars, such as USDC, have great potential to become the main export product of the United States.

In an interview with CNBC Television, Allaire said that a "digital dollar with full reserves" could be an effective way to strengthen the dollar's position in the global arena while maintaining the stability of the digital economy.

According to Allaire, a transparent digital dollar system can help address the current fiscal problems of the United States. He highlighted that even though the dollar remains a world reserve currency, many countries are starting to shift from dependence on the dollar. For this reason, digital dollars need to be developed into the main currency of the internet so that their dominance is maintained.

We have to focus on the power and competitiveness of the dollar first. We need full-backed digital dollars, such as stablecoins, to become US mass export products. If there is a major internet currency in the future, make sure it's a digital dollar," Allaire said.

Allaire also criticized the current global monetary system which he considered to have no healthy money principle. According to him, many governments, including the United States, have huge debts so that their fiscal conditions become unstable.

"The fundamental problem here is the principle of healthy money. Almost every government in the world has a big debt, and their fiscal conditions are irregular," he added.

In the context of regulation, Allaire encourages the US government to immediately regulate digital assets clearly. He mentioned the need for legislation that defines digital assets, bidding processes, distribution, and use.

Digital tokens are a major innovation in economic incentives. We need clear regulations to ensure its use is safe and efficient," he said.

Stablecoin, such as the USDC published by Circle, is designed to maintain its value stably by linking or setting it to the value of the US dollar. To date, USDC's market cap has reached more than 25 billion US dollars (Rp400 trillion), reflecting significant growth in stablecoin adoption as a means of payment and store of value.