There’s no doubt that central banks and other government regulatory bodies all over the world are talking about the growth and widespread endorsements of cryptocurrencies. Now, Jeremy Allaire the CEO of fintech company Circle, says that all the global fiat currencies will have their own versions of cryptocurrency in the future.
Speaking to CNBC in an interview on Monday, the CEO of the Goldman-backed fintech firm said:
Our view is that all fiat currency will be crypto, it seems inevitable at this point.
Circle was started in 2013 and features a blockchain-based app which allows people to transfer money with no charges. The startup also offers its clients a medium for investing in cryptos, with over-the-counter crypto trading for institutional investors.
Circle is backed by US-based investment bank giant Goldman Sachs and Chinese Internet firm Baidu. The company is also expanding rapidly and recently bought out crypto exchange Poloniex.
Introduction of a new Cryptocurrency ‘USD Coin’
Recently Circle announced its plans to launch a new crypto that will be pegged to the US dollar – referred to as the USD Coin. The aim of the new crypto is to enhance transactions made using dollars through blockchain technology and reduce the volatility that has been witnessed in the crypto space.
In mid-May the company announced that it had raised $110 million in an investment round led by Chinese virtual coin mining giant Bitmain Technologies, towards the introduction of the USD Coin. The new coin will enable businesses and consumers to transfer value more efficiently. Each token of USD Coin (USDC), will be backed by reserves of US dollars and is set to launch this summer.
This will not be the first so-called stablecoin in the crypto space, as there are already others that are backed by fiat money. The most talked-about stablecoin however is Tether, perhaps in part due to claims of being used to artificially hike Bitcoin prices last year.
Allaire is optimistic that the USD Coin will benefit from stringent regulations. The new coin will be initially issued by the startup and run on a network managed by Centre, a wholly owned subsidiary of Circle. The company plans to make Centre independent as other firms join the network, Allaire said.
According to Allaire, the aim of the initiative is to bring the traditional financial processes into the blockchain and crypto space. He explained further:
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.
In the future, Allaire said that his company will introduce crypto tokens backed by other global fiat currencies, like the Euro and British pound.
Do you agree with Allaire that all global fiat currencies will become cryptocurrencies? Share with us in the comments section.