Circle recommends Central Bank of Ireland adopt public blockchains for consumer protection

quick take

• Circle will submit a response to the Central Bank of Ireland highlighting the benefits of blockchain-based financial services for consumers.
• Circle provides recommendations on how financial regulators can support innovation while ensuring the best interests of consumers.
• Public blockchains can foster competition and fragment financial services, benefiting consumer privacy and improving our ability to fight financial fraud.
• Companies offering new financial products are required to engage with supervisory authorities prior to formal application.
• Financial regulators should proactively inform consumers of market abuse/abnormalities by tracking and analyzing real-time blockchain transaction data.

Yen response to the Central Bank of Ireland

Circle, the issuer of the USDC stablecoin, response to the Central Bank of Ireland on 17 February discussion paper This called for industry insights to improve consumer-focused financial products.

Circle announced on February 14 how public blockchains can help financial regulators “support innovation while ensuring the best interests of consumers” through products such as stablecoins like USDC and EUROC. I have sent a written recommendation as to whether it will be possible.

Stablecoin providers have adopted a range of blockchain technologies related to consumer protection, including increased competition, fragmentation of financial services, privacy protection, increased financial literacy through transparency, and the ability for regulators to track on-chain data. mentioned the advantages of An announcement posted on the Circle’s website states:

“Blockchain-based payment systems could decentralize proprietary closed-loop data stores amassed by financial service providers and large technology companies, which could pose risks to consumer privacy and security. “

Circle also recommended ways for financial regulators to support innovation while protecting the best interests of consumers. For regulators to review on-chain data and evaluate digital assets based on their own design, based on industry guidance “considering different asset types, activities, risks and incentives”, such as: asked to engage in “crypto-native” activities.

The proactive approach recommended by the Circle included incentivizing “firms offering new financial products” and encouraging engagement with regulators prior to formal filing.

A “regulatory sandbox” will enable digital asset firms to collaborate with regulators and supervisors to test new technologies and approaches. Circle believes that this approach could lead firms to engage more proactively with authorities and regulators to ensure that they act in the best interest of their customers. suggested there is.