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