Circle plans to become a CBDC bank in the U.S.
The second largest StableCoin coin provider company, Circle announced their plan to become a full-reserve national digital currency bank in the U.S.
In the recent week, huge discussions & planning were going on in the financial authorities to regulate & restrict the tremendous growth of the stablecoins market. In the earlier reports, we covered such reports where we claimed that probabilities where chances of StableCoins under the custody of government authorities are huge. Here this is going to be a reality, USDC will be the first ever CBDC of the U.S.
Related: private stablecoins are better than CBDCs : Christopher Waller
Jeremy Allaire, CEO & co-founder of Circle unveiled the company’s plan in a blog post. In the blog post Allaire confirmed that they were already prepared to operate their services under the full regulation & control of the U.S. Federal Reserve, the U.S. Treasury and other government authorities.
Allaire added
“We believe that full-reserve banking, built on digital currency technology, can lead to not just a radically more efficient, but also a safer, more resilient financial system”
So here Allaire believes that their service with stable coin USDC will be more trusted & efficient under the supervision of government authorities.
Further Allaire said that Circle which has a market cap near to $30 billion market in the whole crypto market has lots of opportunity & risks. But now to work under the standard regulation control authorities, USDC will be able to give power in the real economy system. That means they will no longer remain limited to the crypto market only.
“Establishing national regulatory standards for dollar digital currencies is crucial to enabling the potential of digital currencies in the real economy, including standards for reserve management and composition”
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