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July 01, 2024

Circle’s USDC and the Evolution of Stablecoin Market

At the recent REDeFiNE TOMORROW 2024, Jeremy Allaire, CEO & Co-founder of Circle (USDC), discussed with Jim Hiltner, Co-founder & Head of Business Development of Superstate, about the vision of programmable money and its potential to revolutionize the financial system. They also shared diverse perspectives on the growth of USDC and the stablecoin market.


Circle's Drive Towards the Future of Programmable Money

  • Circle was founded with the vision of creating "HTTP for money," a way to represent government-backed digital currency on an open internet protocol, specifically the US dollar as "USDC." This concept is driven by the belief that "programmable money" will unlock the potential of the financial system by making financial transactions more efficient, transparent and accessible to everyone.

  • Allaire believes that the revolution of programmable financial technology through blockchain applications is still in its early stages but has the potential to revolutionize numerous industries, from gaming to international payments.

  • He compares the current state of stablecoins on blockchain to the era of mobile applications before the iPhone, which later unlocked a new wave of innovation for mobile applications.

  • Allaire believes that programmable money will present opportunities for new financial products and services in the future.


USDC Circulation and Transactions on the Rise

  • Circle's USDC has experienced strong growth due to several factors, including increased interest in digital assets, increased transactions and wider use cases.

  • Currently, USDC is used for various purposes, such as international payments and payments for goods and services.

  • Circle has seen increased acceptance of USDC from financial institutions, banks, hedge funds and venture capitalists.


Challenges to Widespread Adoption


Circle believes that creating a simple user experience is crucial for widespread adoption. They are working on developments such as separating fees and partnering with consumer-focused fintech companies to make it easier for users to interact with USDC.



Adoption by Financial Institutions and Regulatory Clarity

  • Acceptance of stablecoins by financial institutions and companies involved in Web3 is growing as regulatory clarity emerges globally and governments increasingly recognize the stablecoins' potential to enhance financial markets.

  • Allaire believes that regulatory clarity is essential for the long-term success of the stablecoin industry, and progress in this area could pave the way for greater acceptance of USDC and other stablecoins in the coming years.


The Role of Stablecoins and CBDCs

  • Allaire proposes a collaborative approach where CBDCs (Central Bank Digital Currencies) can improve the core financial infrastructure while privately issued stablecoins like USDC can foster continuous technological transformation. He points out that private sector innovation can drive change at the retail market level.

  • Allaire sees privately issued stablecoins like USDC having an advantage in terms of agility and innovation. For example, USDC can be used with a wide variety of financial applications.


What Does the Future Hold?

  • Allaire has a positive outlook for the next 5-10 years. He envisions platforms like Circle having a significantly higher velocity of money compared to existing systems, which would benefit economic growth.

  • He believes that blockchain platforms will have a higher velocity of money than traditional financial systems due to faster, safer, and lower-cost transactions.

  • Allaire is optimistic about the future of programmable money, believing it has the potential to revolutionize the financial system, just as programmable objects and software have transformed various aspects of our lives.

  • Allaire envisions a future where on-chain credit intermediation becomes commonplace, with financial transactions being efficient, transparent and accessible to all.


Although these concepts will take time to materialize, Allaire is confident that Circle is well-positioned to play a key role in making them a reality and helping to pave the way for a future full of exciting opportunities for user experience and innovation.



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