Speaking during the ongoing Crypto and fintech conference MoneyConf in Dublin, Ireland, Jeremy Allaire, Co-Founder & CEO of payments company Circle, said that the world is in its nascent stage of “tokenizing everything”.
Allaire was giving his speech about the crypto revolution in the morning session when he made the remarks. He likened blockchain to the early days of the Internet, which transformed the data and communication sectors. Allaire now sees blockchain as being poised to revolutionize the entire finance sector and alter public and civil services as they are perceived today. Allaire explained,
Once you have an open global immutable record-keeping system, transaction-processing system and a secure computing environment, you can re-conceptualize on a global basis every aspect of finance, corporate and commercial law, the intermediation of contracts, and crucially all of the systems we use in both corporate and civic decision making.
The CEO gave an outline of a tokenized global economy and society where almost all forms of value storage and public record become crypto tokens that have a free floating market value and are traded on global digital exchange platforms. He explained:
With crypto-assets, you can tokenize your house, car or art, and establish open global financial relationships around any physical property.
The CEO also vouched for blockchain’s ability to enhance social governance and transparency. He said that the tokenization of private or public votes in all forms of social governance would offer an immutable system that is more transparent and accountable than current models.
The Five Categories of Crypto Asset
Allaire suggested five categories of crypto-assets, beginning with privacy-focused cryptocurrencies, which remove financial activities from the centralized control of governments and serve as a public good on the Internet.
These so-called crypto-securities, Allaire said, can serve to represent rule-based financial contracts and have a potential that goes far beyond a paper contract mediated by a law firm in a court of law. He emphasized that a lot of ICOs fall under this category.
He then addressed crypto-assets that support transaction settlement systems, such as Ripple (XRP) and Stellar (XLM), as well as very ambitious blockchain-based platforms such as Ethereum (ETH), which he characterized as operating systems for the global economy.
Allaire’s last category of crypto-assets were fiat-backed stable coins, designed for financial contracts. Allaire emphasized their potential for use cases that require a less volatile price baseline, but still seek the decentralization and security of blockchain.
According to Cointelegraph last month, Circle closed a $110 mln fundraising round led by mining hardware manufacturer Bitmain to partner on the development of a US dollar-backed stable coin. Circle’s USDC will be an ERC-20 token based on the Ethereum network, and will reportedly be released by Circle in the summer. The investment brought Circle’s valuation to nearly $3 bln, an almost sixfold increase since 2016.
Image Credit: CNBC
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