Stablecoin issuer Circle recently launched its Eurocoin stablecoin and the company’s CEO recently discussed this latest development.
Jeremy Allaire, CEO of Circle, the company behind the USDC and Eurocoin stablecoins, discusses the company’s latest product launches and the state of the general cryptocurrency market.
in one interview with ap newsAllaire said the company’s Eurocoin is pegged to the euro, and the funds are kept in bank accounts. They said that;
“It’s going to be just euro currency held in euro-denominated banking accounts. That’s it. We’re starting out with a very simple approach.”
Asked why Circle launched Eurocoin during the current bear market, Allaire said;
“In some ways, this is a good time to launch products that increase the utility value of blockchain technologies. The market turmoil has been a really positive catalyst for USDC. It has been a flight to safety for crypto. (…) With the launch of Euro Coin, we are bringing the same technology, regulatory framework, trust, transparency and reporting that we have put into USDC.”
Terra’s UST stablecoin collapsed a few weeks ago, causing billions of dollars in losses. Allaire said that he believes stablecoins should be launched within a regulated framework. he said;
“It reinforces our view, whether it is with stablecoins or cryptocurrencies, that this should be done inside the regulated US banking system. And that is why we have run USDC the way we have for four years. And that is holding.”
Allaire pointed out that the United States Congress needs to agree on how to regulate the broader cryptocurrency market. At the moment, there is no clear crypto regulation regarding cryptocurrencies in the US. he said;
“You are looking at two approaches to this issue. You can take a targeted approach like regulating stablecoins, or you can take an all-encompassing approach and regulate the entire industry. But my view has been the Biden administration and Congress. – Democrats and Republicans – will agree on the need for a clear national policy on stablecoins. This is the bottom-hanging fruit.”
Circle’s USDC is the second largest stablecoin by market, behind only the USDT stablecoin issued by Tether.