Circle CEO Jeremy Allaire on the Benefits of Stablecoins
Circle CEO Jeremy Allaire believes that if China wants to internationalize its currency, it should consider allowing Chinese Yuan (CNY)-backed stablecoins. In an interview with the South China Morning Post, Allaire stated that stablecoins may be a more effective path to increasing the use of the RMB in global trade and commerce compared to central bank digital currencies (CBDCs). He emphasized that stablecoins and CBDCs are complementary, and while central banks can upgrade their systems with distributed ledger technology, the private sector plays a crucial role in innovating on the public internet. However, China’s strict economic policies, such as capital controls and limitations on currency convertibility, may hinder the adoption of stablecoins. Some experts believe that China is unlikely to fully embrace currency convertibility, as it prefers to maintain its control and the dominance of the dollar. Nonetheless, stablecoins like Circle and Tether have proven to be beneficial for remittances, particularly for Chinese companies sourcing from overseas.
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