2023 Fintech and Financing Conference & Expo

As regulators scrutinize stablecoins Circle pushes financial inclusion

FT | Nov 18, 2021

Circle pushes financial inclusion USDC - As regulators scrutinize stablecoins Circle pushes financial inclusionPayments company and stablecoin operator Circle announced a range of measures around financial inclusion on Wednesday, as global regulators increasingly debate how to supervise the $130bn industry.  Circle is among those promoting stablecoins as digital currencies with little friction and low transaction costs. “You don’t talk about sending ‘cross-border’ emails any longer, you just talk about sending emails,” said Disparte.

“We’re doing for money what email did for the transfer of information.”

Circle Impact plans include accelerating the use of its stablecoin, USD Coin, for humanitarian relief and aid, said Disparte. “There’s a massive need around the world, we think this should be a standard.”

See:  Will Digital Currencies and Fintech Solve the Financial Inclusion problem?

USD Coin, which Circle jointly operates with crypto exchange Coinbase, was used in Venezuela last year as a medium to help pay healthcare workers in the country using funds that had been seized from the Maduro government.

Other plans include allocating “billions” of the cash and treasuries, which the Boston-based firm said underpin the $34bn worth of USD Coin, to minority-owned depository institutions and community banks as well as supporting women and minority entrepreneurs through its crowdfunding platform SeedInvest. 

Circle, which in July announced plans to go public through a deal with a blank-cheque company chaired by former Barclays chief Bob Diamond and intends to become a bank, has long sought to position itself as the leading regulated stablecoin.  However, policymakers have raised concerns about the effect on consumer wellbeing, the suitability of monetary policy and wider financial stability.

See:  Speech by Jon Cunliffe: ‘Is crypto a financial stability risk’?

A report by the President’s Working Group on financial markets, made up of several US regulatory agencies, said legislation was “urgently needed”, arguing that operators should be treated as banks. Other bodies have suggested alternative approaches, leading the international Financial Stability Board to raise concerns about regulatory arbitrage.

Continue to the full article --> here


NCFA Jan 2018 resize - As regulators scrutinize stablecoins Circle pushes financial inclusion The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - As regulators scrutinize stablecoins Circle pushes financial inclusionFF Logo 400 v3 - As regulators scrutinize stablecoins Circle pushes financial inclusioncommunity social impact - As regulators scrutinize stablecoins Circle pushes financial inclusion

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - As regulators scrutinize stablecoins Circle pushes financial inclusion




 

Leave a Reply

Your email address will not be published. Required fields are marked *

two × three =