A look at stablecoin regulation and central bank digital currencies with Circle CEO Jeremy Allaire

#stablecoin #crypto #Centralbankdigitalcurrency

All right we will shift gears now and bring in our yahoo finances jen schonberger stablecoin issuer circle launched an ad campaign promoting stable coins over central bank digital currency that is china’s cbdc is on full display at the beijing winter olympics it also comes after a white house meeting this week tied to stable coin regulation and jen you spoke

With circle ceo jeremy olaire about all of this correct hey good afternoon karina that’s right uh stable coin issuers circle out with a brand new ad campaign saying quote central bank digital currencies carry the specter of privacy erosion making cyber threats and technology upgrades a taxpayer burden rather than the motive of free market drive and well-regulated

Competition at the same time this week treasury under secretary nelly lang testified before the house financial services committee saying that a central bank digital currency could determine how stable coins co-exist and said that depending on how the fed designs one assuming they proceed with one it could actually supplant stable coins i put that question in an

Exclusive interview to circle ceo jeremy alaire i asked him whether a cbdc poses a threat to private stable coins we also talked about the digital currency space race take a listen i was very appreciative of of under secretary yang’s testimony uh i think she is doing an excellent job of thinking through for the us federal government and obviously shepherding a lot

Of other uh parties around this what’s the right approach to supervising and establishing a framework to regulate firms like circle and um and i think we have uh obviously come forward uh and are in the process of of looking to become a national digital currency bank and we believe of course that dollar digital currencies that are operating at internet scale that

That that that work um you know to improve both not just payments but overall kind of financial and economic system improvements it’s a huge opportunity for the united states and i think um what’s interesting to see is is we’re starting to see policy makers including the under secretary emphasize that this is here to stay this is growing um and uh and i think

There’s an acknowledgement that there’s a here and there there’s a here and now uh and that’s that’s very apparent to a lot of people and then there’s some theoretical things like theoretically there might be you know a government project in the future and i think uh across the board i think increasingly people including in her testimony in you know the under

Secretary’s testimony is very clear that these uh innovations are going to coexist you mentioned earlier uh in the interview that you have applied for a bank charter uh and during the hearing this week in fact uh treasury under secretary lang was asked whether the occ should approve a bank charter for circle curious how that application process is going now and what

You’re hearing from regulators and has the fdic given you any assurance that you would receive deposit insurance and become fdic insured so what i can share is that we are in a process um and it’s it is going to take a it’s a long process and i think um you know we we actually have not formally submitted our application at this point in time uh but it is something

We’re in the pre-application phase and there’s what’s holding you back jeremy uh we’ve got a lot going on um which is one you know one one just general the physics of of uh of everything that we’re doing i think um i i think the second is um is i i think the the government the federal government um i think is coming up to speed on stable coins blockchains digital

Assets the sprint as as as i know you were referring to uh before um and i think are just trying to understand okay where is this going to fit in terms of the kind of charters that might apply and there’s open questions and this was also in i believe some of the under secretary’s testimony about you know this isn’t necessarily about fdic insurance for a fractional

Reserve bank but is it possible that there is some insured uh you know insurance framework that’s more specific to the risks of the reserves and liquidity of a stable coin so there’s things to work out um and and that will take time and it’ll be i hope uh collaborative uh as as you know i think that both the the us government and private sector trying to figure

Out how to do this right the olympics are underway now in beijing and of course china is testing its digital one its digital wallet at the same time as we’ve been talking about the u.s federal reserve is looking at the pros and cons of issuing a central bank digital currency where do you see the u.s right now and the digital currency space race and how do private

Stable coins fit in there i mean our our view is is is is uh is firm which is that the us is winning the digital currency space race uh today the preeminent digital currency on the internet is the dollar uh just looking at usdc alone there are you know uh hundreds of different digital wallets that support this in hundreds of countries around the world uh exchanges

All around the world support convertibility of this uh it supported 2.4 trillion dollars in transactions on the internet last year and and it’s really growing and they’re they’re robust and growing ecosystems around it and so you know i think if you look at a vision for what we want which is open accessible interoperable a standard and technology that is that that

People can innovate on top of without permission that’s the kind of dollar i think we want to win in this space race and on the internet as opposed to something that is tightly controlled government administered uh and the like which is what china’s initiatives really represent and so i think the us is winning i think the question is can the u.s really get some

Energy behind this and ensure that this kind of market competitive open model which has been i think how the west has approached the internet over the past multiple decades can they approach that in the convergence of the internet and the financial system that was a great interview jennifer all right jennifer schoenberger thank you so much for that informative

Interview we will leave that there

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A look at stablecoin regulation and central bank digital currencies with Circle CEO Jeremy Allaire By Yahoo Finance