Circle CEO Urges US to Embrace Digital Dollar to Fight De-Dollarization

Circle CEO Warns of Active De-dollarization

• Jeremy Allaire, the CEO of stablecoin issuer Circle, has warned that the US must take action to mitigate the “very active de-dollarization taking place” around the world.
• He called on Congress and the Federal Reserve to implement stablecoin legislation and digitize the US dollar in order to capitalize on its high demand from those in emerging economies with weak local banking systems.
• If these steps are not taken, alternative currencies and payment systems will continue to eat into the dollar’s dominance.

High Demand for Digital Dollars

Allaire highlighted that there is a high demand for digitally native U.S. dollars, particularly from those in emerging economies with weak local banking systems. He emphasized that if these steps are not taken, alternative currencies and payment systems will continue to eat into the dollar’s dominance.

Stablecoin Legislation Needed

The Circle CEO believes that it is essential for Congress and the Federal Reserve to implement stablecoin legislation and digitize the U.S. dollar in order to capitalize on its high demand from those in emerging economies with weak local banking systems. This would help mitigate “very active de-dollarization taking place” around the world right now, he said.

Separating Bank Lending IOU Risk

In order for USD to remain competitive and safe in Internet era, Allaire stressed it was necessary to separate bank lending IOU risk on electronic money as well as unleash its power as a native data type on the internet which can be openly used and integrated by different platforms globally

Giant Missed Opportunity

If this advice is not taken by government officials, according Allaire this could be a “giant missed opportunity” for America as alternative currency payments are gaining traction globally at an accelerating rate