Circle's CEO warns Congress of the US dollar's collapse

By: Mark Jessy

July 14, 2023 4:55 AM

Jeremy Allaire argued that the US dollar is "under attack" and encouraged Congress to implement stablecoin legislation in order to "build trust" in a digital currency.

The CEO of Circle has warned that if Congress does not act quickly to regulate stablecoins, the dollar's status as the world's reserve currency will be threatened.

Circle, the company behind USD Coin (USDC), released a two-minute film starring Jeremy Allaire on July 13 with the intended audience being members of Congress.

On July 12, a year after it was first introduced in June 2022, bipartisan legislation pertaining to digital assets was reintroduced to Congress.

"The dollar's dominant position is under threat." "Competition for what money is used on the web is increasing," Allaire asserted in the video, emphasizing the growing danger posed by other digital currencies.

"The real question" is whether global commerce would be conducted in digital dollars, euros, or yuan," he said. Allaire previously stated that stablecoins might help China increase yuan adoption and utilization.

He posed the question, "Do we want dollars to be the basis of currency on the internet, or will we let other nations lead the way?" is a choice the United States "has to make."

"If the dollar is to continue serving as the world's reserve currency and the United States is to maintain its position as the world's economic leader over the next decade and beyond, then it is imperative that we work to establish confidence in digital dollars and establish regulations for stablecoins immediately."

When arguing for the need to regulate stablecoins, Allaire argued that cryptocurrencies will "fundamentally change the way we pay for things."

He went on to say that "billions" will utilize cryptocurrency because traditional banking transactions take "days" and fees amount to "a nearly trillion dollar tax on the global economy."

Mike Novogratz, the founder of cryptocurrency investment firm Galaxy Digital, seems to agree with Allaire. On July 13, he rhetorically asked his Twitter followers if they would rather hold a stablecoin that pays a higher interest rate than a "bank that looks a lot like a hedge fund."

"The answer is obvious," Novogratz stated. "I'm crossing my fingers that U.S. lawmakers will back the creation of well-regulated stablecoins instead of trying to stop it."