Stablecoins become the money of the Internet age
As the status of stablecoins in the global financial market increases, Circle confidently states that stablecoins will become the mainstream payment method in the Internet era. As the issuer of $USDC, the world’s second largest stablecoin, Circle’s chief strategy officer Dante Disparte said in an interview with Cointelegraph:
"We believe that stablecoins will become mainstream payment tools, especially in today's global market that relies on digital technology."
Disparte further pointed out that more and more payment companies and financial services companies are entering this industry, which shows that stablecoins will continue to exist and develop in the future. However, Disparte also emphasized that regulatory frameworks around the world must agree to ensure that all stablecoin issuers meet financial crime compliance requirements and maintain appropriate reserves. “It is critical to ensure that companies issuing stablecoins adhere to conservative reserve principles and compliance standards,” he noted.
Challenges in the U.S. and Global Regulatory Environment
Circle is preparing to move its global headquarters to New York in early 2025 and had filed for an initial public offering (IPO) in January this year. Disparte believes that the regulatory framework for stablecoins in the United States is not yet complete, which may pose a threat to U.S. financial interests. He explained:
“The United States currently lacks a federal regulatory framework for U.S. dollar-related stablecoins, which may encourage unregulated products to take advantage of the trust in the U.S. dollar and bypass U.S. regulatory mechanisms.”
He further emphasized that Congress should pass a stablecoin bill with bipartisan support, which will promote safe competition and ensure that stablecoins can operate legally in the U.S. payment market. Such legislation would require all companies issuing stablecoins to comply with anti-money laundering, counter-terrorism financing and sanctions obligations and would apply to both U.S. and international issuers. Disparte also mentioned that the EU's "Crypto Asset Market Regulation" (MiCA) has provided a clearer regulatory framework than the United States, which will help the legal development of stablecoins around the world.
Competition in the stablecoin market intensifies
Despite intensifying market competition, Circle remains optimistic about the future development of stablecoins. Along with Circle’s $USDC, Tether’s $USDT remains the market leader with a market capitalization of over $118 billion. Payments giant PayPal also recently launched PayPal USD ($PYUSD), a stablecoin pegged to the U.S. dollar, which quickly surpassed a market capitalization of $1 billion. In addition to this, Ripple Labs has also begun testing its USD-pegged stablecoin Ripple USD ($RLUSD).
As major financial companies enter the stablecoin market, Disparte, Circle’s chief strategy officer, believes that this kind of competition is conducive to the healthy development of the ecosystem. He said: "We welcome any competitors to come and challenge, whether in the United States, the European Union or Singapore, etc. Stable currency issuers should accept a strict regulatory process and follow the compliance standards our company adheres to." As the world With the rising demand for digital payments, the future development space of the stablecoin market will undoubtedly be broader.
Further reading
Apple opens up NFC chip! Circle CEO is happy to see: USDC contactless payment will be launched soon
IPO coming soon! USDC issuer Circle expands manpower and launches customized solutions for developers?
