Circle predicts that stablecoins will become a major global payment method

Cirque, the world's second-largest stablecoin USDC issuer, feels “confident” that coins will become mainstream money. At the same time, rules must be agreed globally to ensure compliance for all payment stable coin issuers.

Circle Chief Strategy Officer and Head of Global Policy Dante Dispart told Cointelegraph in an exclusive interview, “Circle is confident that it will be accepted as a mainstream coin for the Internet age.”

“We expect that there will be internet payment firms and other financial services companies trying to enter or expand into this space, which is a strong sign that the stablecoin is here to stay,” Disparte said.

However, Disparte feels it is important that rules and regulations are agreed upon globally. He said the fundamentals of conservative reserves and financial crime compliance should apply equally to any company claiming to issue a stable coin.

The club moves to New York

Dispart's comments come as the stablecoin issuer prepares to move its global headquarters to New York in early 2025 after filing for an initial public offering (IPO) in January.

Disparte noted that the U.S. framework would empower state banking and money transfer regulators to develop and regulate the payments industry at the regional level. Other countries regulate payments or electronic money (e-money) activities at the national level.

Related: US stablecoin bill to ‘cement' dollar dominance, to fight sanctions evasion

“The key question now is whether the U.S. will finally enact federal stablecoin rules or wait for the uncertainty, which policymakers of both U.S. political parties say is unacceptable,” Disparte said. He explained.

“The lack of a stable dollar-denominated currency in the US regulatory framework represents a threat to US interests. This loophole encourages the creation of dollar-denominated products in violation of US law, which can become a safe haven for illegal actors.”

Dyspart said the federal stablecoin bill is necessary to promote safe competition in how Americans send, spend, save and secure their money.

What are stablecoins and how do they work? Source: Youtube.

The stablecoin bill advanced by the House Financial Services Committee in July 2023 has generated significant policy momentum and support, he said.

“Congress must pass such a bill bipartisanly, and the president must sign it if it comes to the table. The legislation would create a platform for all lawmakers to address America's anti-money laundering, terrorist financing and sanctions obligations.”

He added that these standards should be applied to US stablecoin issuers as well as their international partners, given permission to issue dollar-denominated stablecoins from jurisdictions including the European Union and the United Arab Emirates.

Will EU MiCA 2.0 fill gaps in governance?

EU markets partially implemented the Crypto-Assets Regulation (MCA) in June, with new rules regarding stablecoins taking effect on June 30.

In the year On July 1, the circular Electronic Money Institution (EMI) said it became the first global stablecoin issuer to achieve compliance with the MiCA regulatory framework after receiving approval from the French banking regulatory authority. The USDC and EuroC are regulators under the new rules.

Related: MiCA rules take effect in Europe – here's what you need to know

“With the MCA, Europe has succeeded in doing what other regions, including the US, have not: provide legal and regulatory transparency for one digital asset market, but all of them,” Disparte said. However, he pointed out that

“Like all new laws or general regulations, MICA is imperfect and over-prescribed in areas, EU policymakers are already considering MiCA 2.0, which could fill some gaps in the regime, such as non-fungible tokens, decentralized finance and other areas.”

Stablecoin market sees increasing competition

Competition in the stablecoin market is heating up with new entrants such as PayPal USD-pegged stablecoin, PayPal USD (PYUSD). Ripple Labs has begun testing a USD-pegged stablecoin, Ripple USD (RLUSD), on both the XRP ledger and Ethereum, and plans to expand to additional blockchains.

According to data from CoinMarketCap, Tether USDT is the largest stablecoin with a market cap of over $118 billion. Tether has announced plans to establish a new stablecoin with the United Arab Emirates Dirham (AED).

Stablecoins: How the Most Stable Cryptocurrencies Can Crash the Entire Market Source: Youtube.

In the year On August 26, the market value of the stable coin, excluding the algorithm, reached a record 168 billion dollars. The market hit an all-time high of $167 billion in March 2022, but fell to $135 billion by the end of that year.

“We invite any competitors to come to the US, EU, Singapore and others, submit themselves to a rigorous licensing process, follow the same standards that form the basis of our company, and join us as a rule. Companies will want this ecosystem to grow and develop for the long term,” Dyspart added.

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