Bitcoin Dethroned? Circle CEO Says Stablecoins Will Fast-Track Yuan Globalization Efforts

Circle USDC/USD CEO and co-founder Jeremy Allaire expressed his positive outlook towards the growth of Web3 in Hong Kong and the chances of mainland China's opening up to cryptocurrencies.

"The reality is that every other major financial market in the world is also embracing digital assets, and the biggest financial institutions in the world are embracing digital assets," he told South China Morning Post. "So for Hong Kong to be relevant, it has to."

The Chinese government supports the development of Web3 in Hong Kong, but Allaire clarified that this doesn't imply an imminent acceptance of crypto trading in mainland China.

Also Read: Vitalik Buterin Suggests Bitcoin Needs Scaling Solutions Like Ethereum

"That’s different than feeling like it says something about opening up the trading of crypto on the mainland. I don’t think there’s anything there," he said.

Despite occasional supportive comments from mainland Chinese officials where cryptocurrency is prohibited, there's no concrete sign that Beijing is shifting towards a more favorable view of cryptocurrencies, Allaire explained.

Stablecoins, digital assets usually tied to a fiat currency, are a potential instrument for China to achieve its goal of internationalizing the yuan, rather than their central bank digital currency, eCNY.

"If, eventually, the Chinese government wants to see the RMB used more freely in trade and commerce around the world, it may be that stablecoins are the path to do that more than the central bank digital currency," he said.

Read Next: Bitcoin, Ethereum And Now Mantle? New Layer-2 Network Proposes $200M Ecosystem Fund

Join Benzinga's Future of Crypto in NYC on Nov. 14, 2023 to stay updated on trends like AI, regulations, SEC actions & institutional adoption in the crypto space. Secure early bird discounted tickets now!

Image: Shutterstock