On Monday, Jeremy Allaire, Circle’s CEO, took to CNBC’s Squawk Box to argue that the Biden administration will push crypto forward as part of a large attempt to upgrade infrastructure: “I think that they will ultimately be supportive because this is an infrastructure change as big as the initial commercial internet, and they’re going to be focused on infrastructure changes that make America more competitive.”
Overall, moderate politics benefit crypto, Allaire reasoned: “You’ve got moderates, both on the left and the right, who I think see this constructively.”
Allaire responded to Squawk Box today, in particular, to concerns that the left wing in the United States has taken a hard line against financial tool, especially stablecoins: “You have on the very liberal end of the spectrum a view that somehow this is not good for individuals who have less access to the financial system, when in fact, the opposite is the case, that this technology — in particular stablecoins — hold promise of opening up and widening access to the financial system more deeply than the existing banking system.”
Speaking of stablecoins and whether a central bank released digital currency could crowd out private stablecoins like the USDC stablecoin, Allaire said that private fintech platforms have taken the lead in introducing existing stablecoins as a way to transfer money while central banks have been exploring CBDCs.
“Right now, whether it’s the Federal Reserve, or the European Central Bank, or central banks around the world, there’s obviously a lot of interest in this topic…But the reality is that right now, leading companies in the private sector — whether it’s out of the crypto industry such as Circle and Coinbase or major firms like Visa or major internet technology firms — are racing ahead to implement stablecoins as…a fundamental innovation in how money moves around the world,” the CEO said. He also added that in the coming two to four years it will be key to see if the relevant standards developed by the private sector converge with the safeguards central banks