The CEO of fintech firm Circle has said that all global fiat currencies will eventually become cryptocurrencies, arguing that it “seems inevitable.”
Circle Wants to Introduce a USD Coin
Jeremy Allaire, the co-founder of Goldman Sachs-backed Circle, was speaking to CNBC yesterday when he made these comments:
Our view is that all fiat currency will be crypto. It seems inevitable at this point.
With interest in the crypto market rising, Circle is reported to have said it wants to introduce a new cryptocurrency. Called the USD Coin, it will be pegged to the U.S. dollar. According to the report, the aim of the new coin is to speed up transactions made with dollars via the blockchain. It’s also hoped that it will boost mainstream financial transactions with cryptocurrencies.
Allaire states that the new token is being created with an open-source platform known as CENTRE. The company is hoping that other financial institutions will also join it. He added:
Our focus with fiat stablecoins is we really think of it as a core building block for a crypto native global digital economy. Our interest is in how do we take all of the tasks involved in the financial industry and move those onto a crypto native infrastructure.
Increases Minimum Bitcoin Trades
In April it was reported that Circle had risen its minimum Bitcoin trade size to $500,000 despite a slump in currency values. At the time, Allaire stated that block trades made by its over-the-counter (OTC) trading desk had increased since the beginning of the year. As a result, it had boosted it from $250,000.
The Goldman Sachs-backed company is also taking steps to become regulated. It’s doing this by seeking a federal banking license to provide more services to customers, reported Bloomberg earlier this month. According to Tom Lee, co-founder of Fundstrat Global Advisors, this will be a good thing for Bitcoin’s price.
San Francisco-based crypto exchange Coinbase is also making headway in the regulatory space. Lee states that both of these companies are “running towards” regulation. Lee said:
We believe both companies would only make these moves if their perception of regulatory risks in crypto was improving.
Yet despite this, critics remain. The founder of Hotmail, Sabeer Bhatia, said earlier this month that the crypto market is “too good to be true.” He added that the underlying business model is fraudulent in that the white papers involved are nothing more than a hope for what the world could be like.
Do you think fiat currencies will become crypto versions in the future? Let us know in the comments below.
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