Reading time: ~2 m
The CEO of Circle expressed his opinion on the collapse of the UST rate and the prospects for the development of other stablecoins, including USDC.
Jeremy Allaire (Jeremy Allaire) in an interview with The Protocol said that he was shocked by the speed of the collapse of the algorithmic stablecoin UST, which has recently enjoyed great popularity among investors. The Circle executive has long had suspicions that the UST was not viable, so it could collapse like a house of cards at any moment, Ellayr tried to convince the interlocutor. Asked if the businessman tried to warn Terraform Labs founder Do Kwon about the possible collapse of the stablecoin, he said Kwon reacted aggressively to any concerns about UST security and was “closed to interoperability.”
As for USDC, Ellayr said Circle is committed to creating the most trusted and transparent model of operation. For the safe and secure operation of USDC, pegged to the U.S. dollar, the company is working with regulators and audit firms, he said. Ellayr noted that the company does not seek to make USDC the “Holy Grail” of stablecoins, and in the future Circle may switch to an algorithmic version of USDC. Such stablecoins are able to function without the participation of a centralized issuer and state regulation, the businessman assured.
However, according to him, this may take another 20 years, so it is better to use the “hybrid digital currency model” to begin with. The idea behind the Circle CEO is that government liabilities, including Treasury bonds and U.S. Federal Reserve (Fed) cash, can be tokenized. Thus, a version of a public digital currency compatible with the current financial system will be created.
Earlier, Jeremy Ellayr stated that in the coming years, the tokenization of assets will become especially popular, as it will increase their liquidity and availability without any systemic risks.
#Stablecoins #model #hybrid #digital #currency
