Jeremy Allaire, CEO of Circle, believes that stablecoins pegged to the Chinese yuan could be a better option for the Chinese government’s goal of internationalizing its currency than central bank digital currencies (CBDCs). Jeremy Allaire made these remarks during an interview with the South China Morning Post (SCMP). He stated that if the Chinese government wants to see the RMB used more freely in trade and commerce around the world, stablecoins may be the path to do that more than CBDCs. However, he clarified that the two systems are complementary. Circle is the issuer of USD Coin [USDC], the second-largest USD-backed stablecoin after Tether [USDT].
Jeremy Allaire remains hopeful for future Chinese government support of virtual assets
The Chinese government has not opened up to cryptocurrency, despite Hong Kong embracing virtual assets. The team behind the stablecoins, CNH Coin and HKD Coin, was detained in Shanghai in May. CNH Coin is pegged to the offshore yuan (CNH), while HKD Coin is pegged to the Hong Kong dollar (HKD). Despite this, Circle CEO Jeremy Allaire remains hopeful that the Chinese government will eventually support virtual assets in the future.
HKMA plans to implement stablecoin regulations by 2024
The Hong Kong Monetary Authority (HKMA) has announced plans to implement regulations on stablecoins by 2024. The HKMA is also participating in a cross-border blockchain pilot for the eCNY. Crypto firm Circle, with a strong presence in Asia and 125 employees on the continent, welcomes the news. HKMA’s actions support crypto firms like Circle by Jeremy Allaire, ensuring a secure and reliable environment for digital assets. The regulations will also help to protect investors and ensure that stablecoins are used responsibly. The HKMA’s move is a positive step towards the adoption of digital assets and blockchain technology in the region.
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