Circle, the issuer of USD Coin (USDC), closely monitors emerging cryptocurrency markets across Asia. There is “huge demand” for U.S. dollar-backed stablecoins in emerging markets, and “Asia is really at the heart of it,” CEO Jeremy Allaire said. bloomberg.
Therefore, “Asia is a big focus area for us,” he said. Specifically, Circle is keeping an eye on regulatory developments in Hong Kong, aiming to establish itself as a cryptocurrency hub. Hong Kong approved retail cryptocurrency trading on June 1, a major step towards achieving this goal. Allerre pointed out:
“Hong Kong [is] It is clear that we are trying to establish ourselves as a very important center for digital asset markets and stablecoins, and we are paying close attention to that. “
He added that regulatory developments in Hong Kong may reflect the growth of the cryptocurrency market in Greater China.
The Circle CEO’s comments come a few weeks after the company obtained a major payment processor license in Singapore. June 7This will allow us to distribute USDC “more fully within the region”.
Allaire does not believe that a single market will dominate. He said markets such as Singapore, Hong Kong, Tokyo, UAE, Paris, London and the US were “moving forward in parallel,” adding that one market would not win “at the expense of the other.” rice field. Rather, all these markets “contribute to different aspects of the economic system.”
Regulatory Outlook for Stablecoins
There is a global movement for countries to introduce stablecoin regulations. Japan, for example, introduced a regulatory framework for stablecoins. June 1. According to Allaire, the move means fiat-linked digital currencies “are about to become part of the mainstream global financial system.”
Allaire said stablecoins would require a “full reserve model” and assets could be a mix of cash and short-term Treasury bills. he added:
“…if you have a foundation as an asset base, and it is regulated and controlled by banking supervisors, you will actually have the safest legal digital product in the world.”
Allaire believes stablecoins like USDC will remain outside the jurisdiction of the U.S. Securities and Exchange Commission (SEC).
He argued that some stablecoins could be classified as securities and placed under SEC control. But he said payment tokens like USDC “clearly are not subject to SEC oversight.”
Post-Asia, especially Hong Kong, is a “big focus” for Circle. CEO Jeremy Allaire makes his first appearance on CryptoSlate.