Circle drives financial inclusion as the supervisory authorities check stablecoin

The payment company and the StableCoin operator Circle announced a number of measures for financial inclusion on Wednesday, since the global supervisory authorities are increasingly discussing how the 130-billion dollar industry is to be supervised.

The initiative Circle Impact also reflects the growing competition between companies that want to advertise their digital currencies as the most efficient tool for quick and inexpensive payments around the world.

"So much of the work we operate with Circle Impact heats up a fire that we have already sparked," said Dante Dispafte, Chief Strategy Officer and Head of Global Policy at CIRCLE DER Financial Times.

stablecoins, whose values ​​are linked to the underlying assets, are traditionally preferred by investors to switch from Fiat currencies to speculative digital currencies.

But circle is one of those that promote stable coins as digital currencies with little friction and low transaction costs. "One no longer talks about sending 'cross-border' emails, but only about sending emails," said Disarte. "We do for money what email has done for the transmission of information."

CIRCLE Impact plans include the acceleration of the use of his StableCoin USD Coin, for humanitarian aid and help, Dispipartigen said. "There is an enormous need worldwide, we think that this should be a standard." USD Coin, which Circle operates together with the Coinbase crypto exchange, was used in Venezuela as a medium last year to pay the country's health personnel by means of the Maduro government.

other plans include the assignment of "billions" of cash and government bonds, which, according to the company based in Boston, underpin the value of $ 27 billion in Coin, to depot banks in the possession of minorities and municipal banks as well as the support of women and entrepreneurs from minorities with its crowdfunding platform Seedinvest.

CIRCLE, which in July plans for the IPO with a blank check company, chaired by the former Barclays boss Bob Diamond and wants to become a bank, has long been trying to position itself as the leading regulated stablecoin. At the beginning of this month, it was announced that it would set up a regional headquarters in Singapore, where it works with the central bank, a lighthouse project with USD. to build up coin.

His main competitor in the payment area is Pax Dollar, the first stablecoin that was introduced to Metas Digital Wallet Novi last month because he carries out a pilot project in parts of the USA and Guatemala. Metas StableCoin Diem has been subject to an official examination as Libra since his first announcement as Libra in 2019 and is still faced with the market launch.

However, the supervisory authorities are increasingly warning of the potential effects of the stablecoin market, which has grown by more than $ 100 billion in the course of the year. Political decision -makers have expressed concerns about the effects on the well -being of consumers, the suitability of monetary policy and general financial stability.

In a report of the President of the President for Financial Markets, consisting of several US regulators, it is said that legislation is "urgently needed" and argued that operators such as banks should be treated. Other bodies have proposed alternative approaches, which meant that the International Financial Stability Council expressed concerns about the supervisory arbitrage.