Circle Becomes Official Issuer of USDC and EURC Stablecoins for Europe First

Previously, CEO and co-founder of crypto firm Circle Jeremy Allaire said digital assets would become key to international trade.

In addition, digital currencies will help the US dollar maintain its strength and support new infrastructure for transactions and exchanges.

“The currency competition of the future is a technology competition, not just a monetary policy competition. The dollar is the world's reserve currency, but the US cannot take that for granted,” Allaire said, as quoted by Yahoo Finance, Monday (1/22/2024).

Circle, the company that issues the stablecoin USD Coin (USDC), a stablecoin pegged to the US dollar, is a key player in the stablecoin market with a market capitalization of USD 135 billion or equivalent to IDR 2,107 trillion (assuming an exchange rate of IDR 15,609 per US dollar).

Circle filed for an IPO about two weeks ago, having built a platform that enables near-instant transaction settlement and low-cost global payments.

The ability to use the US dollar more efficiently for cross-border transactions is one way the currency can continue to lead globally.

“I think the opportunity internationally is, you know, how a digital dollar can play an increasingly larger role in humanitarian aid, in the effective use of remittances and international transactions,” Allaire explained.

Despite rapid growth and wider adoption in the stablecoin market, the US has yet to pass a regulatory structure for digital assets – a critical next step for a digital dollar.

Last year, the US House Financial Services Committee passed the Stablecoin Payments Clarity Act, a bill that would establish a regulatory framework for the digital asset class.

However, its progress was stalled by opposition from the Democratic Party, which prevented Congress from considering the legislation.