THE co-founder of one of the world’s most popular cryptocurrencies called for tighter regulation of the sector to guard against the fraud and wild swings that have dogged it, in an interview with AFP.
Jeremy Allaire of Circle recounted the US firm’s decision to offer a stabilized cryptocurrency — and insisted crypto operators owed it to society to submit to safeguards just as other emerging sectors such as AI must. “We have social objectives that we have to match against the technology,” Allaire said during a visit this week to Circle’s European headquarters in Paris.
Circle offers a USDC “stablecoin”, pegged to the dollar, as well as a euro-pegged variant, EURC.
Currently, $35.5 billion worth of USDC are in circulation. As with other cryptocurrencies, transactions are recorded on a decentralized ledger, the blockchain, and not by a bank as is the case with traditional currencies. However, whereas the dollar value of cryptocurrencies such as bitcoin tends to fluctuate, often wildly, the creators of stablecoins actively target a stable value.
In a world propelled by technological development, Allaire said, safeguards are vital for such activities.
Cryptocurrencies have made headlines since their creation, from their extreme volatility to the collapse of several industry giants, foremost among them the FTX exchange platform.
AFP
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