AP

Circle CEO Jeremy Allaire on cryptocurrency market turmoil

Jun 20, 2022, 5:30 AM | Updated: 5:56 am

NEW YORK (AP) — Circle is the cryptocurrency company behind USD Coin, the second-largest so-called “stablecoin” in the crypto industry.

Unlike more popular cryptocurrencies like bitcoin, stablecoins are typically backed by gold, government bonds, cash or other assets, and are typically priced on a 1:1 ratio with the U.S. dollar. More than $50 billion is stored in USDC, second only to Tether, a rival stablecoin with $70 billion in assets.

Co-founder and CEO Jeremy Allaire spoke to The Associated Press about Circle’s launch of Euro Coin, its euro equivalent of USD Coin. He also spoke about broader turmoil in the cryptocurrency space.

Q: Why are you launching a new cryptocurrency, Euro Coin, during this troubled time for the industry?

A: In some ways, it’s a great time to be launching products that increase the utility value of blockchain technologies. The market turmoil has been a really positive catalyst for USDC. It has been the flight to safety for crypto. (…) With the launch of Euro Coin, we’re bringing the same technology, regulatory framework, trust, transparency, and reporting that we put into USDC.

Q: How will you back Euro Coin? Are you going to hold Eurobonds like you hold Treasuries for USDC?

A: It’s going to be just euro currency, held in euro-denominated banking accounts. That’s it. We’re starting in a really simple way.

Q: Terra, a so-called “algorithmic stablecoin,” collapsed in May, erasing $40 billion in wealth in hours. This month the company Celsius froze all deposits and appears to be the crypto equivalent of a bank failure. What’s going on here?

A: It reinforces our view, whether it will be with stablecoins or cryptocurrencies, that it should be done inside the regulated U.S. banking system. And that’s why we’ve run USDC as we have for four years. And that’s holding up.

Q: What do you make of Congress’ efforts to regulate crypto?

A: You’re seeing two approaches on this issue. You can take the targeted approach like regulating stablecoins, or you can take the omnibus approach and regulate the entire industry. But my view has been that the Biden administration and Congress — Democrats and Republicans — will agree on the need for clear national policy on stablecoins. It’s the lowest hanging fruit.

Q: Turmoil in the crypto industry has caused layoffs at many firms. Coinbase laid off 18% of its staff this week. How are you being impacted?

A: I think Circle’s position is very strong right now. Our primary business is USDC, and its stability means we’re sort of counter cyclical to the broader sell off. We’ve got 115 open roles that we’re recruiting for right now. I think we’re kind of located in a slightly different place in the ecosystem.

___

Interview edited for clarity and length.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Colorado River settlement center of new Navajo Nation push...

Associated Press

Tribes say their future is at stake as they push for Congress to consider Colorado River settlement

Navajo officials are celebrating the signing of legislation outlining a proposed Colorado River settlement that would ensure water rights.

8 hours ago

Arizona doctors California abortions...

Associated Press

Arizona doctors can come to California to perform abortions under new law signed by Gov. Newsom

Arizona doctors can temporarily come to California to perform abortions for their patients under a new law signed by Gov. Gavin Newsom.

1 day ago

Father convicted of first-degree murder in northern Arizona...

Associated Press

Arizona man convicted of first-degree murder in starvation death of 6-year-old son

A northern Arizona father was convicted of first-degree murder Thursday in the 2020 starvation death of his 6-year-old son.

1 day ago

Former President Donald Trump sits in a courtroom next to his lawyer Todd Blanche before the start ...

Associated Press

Trump hush money trial enters new phase after defense rests without testimony from former president

Donald Trump's hush money trial is now closer to the moment when the jury will begin deciding the former president's fate.

3 days ago

UoA student convicted of first-degree murder after killing professor...

Associated Press

Former Arizona grad student convicted of first-degree murder in 2022 shooting of professor

A former University of Arizona grad student was convicted of first-degree murder after fatally shooting a professor on campus two years ago.

3 days ago

Rudy Giuliani bankruptcy filing defamation lawsuit...

Associated Press

Ex-NYC Mayor Rudy Giuliani, Arizona’s Kelli Ward plead not guilty in fake elector case

Giuliani appeared remotely for the arraignment that was held in a Phoenix courtroom. His trial will take place in October.

4 days ago

Sponsored Articles

...

Condor Airlines

Condor Airlines can get you smoothly from Phoenix to Frankfurt on new A330-900neo airplane

Adventure Awaits! And there's no better way to experience the vacation of your dreams than traveling with Condor Airlines.

...

Collins Comfort Masters

Here’s 1 way to ensure your family is drinking safe water

Water is maybe one of the most important resources in our lives, and especially if you have kids, you want them to have access to safe water.

...

Day & Night Air Conditioning, Heating and Plumbing

Day & Night is looking for the oldest AC in the Valley

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.

Circle CEO Jeremy Allaire on cryptocurrency market turmoil