At the Davos Forum, Circle CEO Jeremy Allaire emphasized the role of stablecoins as pivotal tools in the global payment system. He highlighted that under U.S. and EU regulations, payment stablecoins are classified as "cash instruments" for payments and settlements, prohibiting issuers from offering interest to holders. Allaire supports this regulatory approach, arguing that concerns about stablecoins depleting bank deposits are exaggerated, similar to historical fears about money market funds.
Allaire introduced the concept of a "new physics of money," suggesting that stablecoins could enhance capital flow efficiency and money velocity, potentially reducing the need for a large monetary base to support economic activities. He also forecasted that billions of AI agents will integrate into the economic system within the next three to five years.
Circle CEO Advocates for Stablecoins as 'Cash Instruments' at Davos
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