According to the CEO of Circle, the United States must take advantage of the “high demand” for digitally native dollars, particularly from those in developing nations with shaky local banking infrastructure.

According to Jeremy Allaire, the CEO of stablecoin issuer Circle, the United States must enact stablecoin laws and digitize the U.S. dollar to counteract the “very active de-dollarization taking place” globally. In light of the current U.S. financial crisis, Allaire delivered his remarks at the Consensus 2023 conference on April 26.

The stablecoin issuer behind USD Coin, Circle, CEO urged Congress and the Federal Reserve to intervene, or other currencies and payment systems will continue to challenge the supremacy of the dollar:

“We have a very active de-dollarization taking place. You’re having very significant reactions to the U.S. risks in the U.S. banking system, risks with the U.S. government itself, a geopolitical imposition on many parts of the world [and] the desire for alternative payment systems all around the world.”

Allaire claimed that for the USD to be “competitive” and “safe” in the internet era, the U.S. must swiftly craft stablecoin laws, and the Federal Reserve must integrate the digital dollar into its “core systems” to take advantage of the strong demand everywhere:

“The demand for digital dollars like USDC is highly global. We see that demand all around the world — we see it in emerging markets, we see it in markets where people want to hold a digital dollar versus their local banking system […] as an efficient medium of exchange for various types of international transactions.”

With the recent introduction of USDC on the Cross-Chain Transfer Protocol, Circle has taken some responsibility into its own hands.

Since the company started producing and minting USDC in 2017, Allaire claimed that the new solution is the “most important new piece of blockchain infrastructure.”