2024

World

USDC

Jeremy Allaire, the co-founder of Circle, one of the world’s leading cryptocurrencies, has called for stricter regulation within the sector to protect against fraud and volatility during an interview with AFP. 
Jeremy Allaire discussed the US firm’s decision to introduce a stabilized cryptocurrency and emphasized that crypto operators have a responsibility to society to implement safeguards similar to those required in other emerging sectors like AI. “We have social objectives that we have to match against the technology,” Allaire stated during his recent visit to Circle’s European headquarters in Paris. 
<a href="https://www.unlock-bc.com/125399/circle-registers-first-mica-compliant-stablecoin-issuer-eu/">Circle offers USDC</a>, a “stablecoin” pegged to the dollar, along with a euro-pegged variant known as EURC. Currently, there are $35.5 billion worth of USDC in circulation. 
While transactions for cryptocurrencies are recorded on a decentralized ledger, known as the blockchain, rather than through banks as with traditional currencies, the value of cryptocurrencies like bitcoin is often subject to significant fluctuations. In contrast, the creators of stablecoins actively aim for price stability. 
In a rapidly advancing technological landscape, Allaire asserted that safeguards are essential for such activities. “If I’m writing software to control a ballistic missile system, that should be regulated activity,” he remarked. “If I’m writing a large language model and deploying that, and it has the potential to do very problematic things in society, there need to be rules that need to be assessed. Crypto is the same thing.” 
Cryptocurrencies have frequently made headlines due to their extreme volatility and the collapse of several industry leaders, most notably the <a href="https://www.unlock-bc.com/122834/ftx-bankruptcy-cash-reimbursement-not-crypto/">FTX</a> exchange platform. Bitcoin remains a favored currency for making payments on the dark web, often linked to ransomware attacks that lock victims out of their computer systems until a ransom is paid. 
According to a recent Chainanalysis report, the first half of 2024 saw a decrease in illicit activities; however, $460 million was still paid out in ransomware, a two percent increase from the previous year. 
Allaire pointed out that crypto exchanges operate on open-source software, enhancing transparency, visibility, and security. Yet, he acknowledged that some have “used the technology to do things outside of any kind of supervision.” He remarked, “You’ve seen fraud, abuse. You’ve seen people running off with money.” 
When cryptocurrency first emerged, “unregulated intermediaries” proliferated within the sector, leading to significant losses in many cases. “Of course, the risks they take… in many cases, have led to significant losses,” Allaire explained. “But that’s not an argument against the technology. That’s an argument against humans. And it’s an argument for better supervision.” 
Regulators worldwide have taken note of these challenges. Last year, the European Parliament adopted the <a href="https://www.unlock-bc.com/116251/micas-impact-on-europes-crypto-bitcoin-surges-euro-trading-peaks-and-market-share-grows/">“MiCA” (Markets in Crypto-Assets) framework</a>, which requires mandatory approval for digital-asset service providers. In July, Circle announced it was the first stablecoin issuer to comply with this new regulation. 
Stablecoins facilitate intra-crypto exchanges for investors without needing to engage a bank. They also provide users access to a dollar-pegged product without requiring a bank account in the United States, enabling cross-border payments and money transfers. 
In the US, there is also a push for enhanced regulation. US presidential candidate Kamala Harris was quoted telling Bloomberg last week, “We will encourage innovative technologies like AI and digital assets, while protecting our consumers and investors.” In May, the US House of Representatives passed the Financial Innovation and Technology for the 21st Century Act, a legal framework designed to regulate the crypto market. 
Meanwhile, Circle is preparing to relocate its headquarters from Boston to New York City—“at the very top of the World Trade Center… the very heart of the dollar international system,” Allaire noted. “That’s in part symbolic. It’s also who we are, what we’re doing. We’re building, hopefully, the world’s leading digital dollar and upgrading to this new internet financial system.” 
The post <a href="https://www.unlock-bc.com/129442/circles-allaire-calls-for-stricter-crypto-regulations-amid-volatility-and-fraud-concerns/">Circle’s Allaire Calls for Stricter Crypto Regulations Amid Volatility and Fraud Concerns</a> appeared first on <a href="https://www.unlock-bc.com">UNLOCK Blockchain</a>.

Circle’s Allaire Calls for Stricter Crypto Regulations Amid Volatility and Fraud Concerns

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