Circle, the company currently owning cryptocurrency exchange Poloniex, believes that there is a future for stablecoins as the market grows. Jeremy Allaire, who is the chief executive officer (CEO) of Circle opined that the bear market slowed down investors’ activities in the marketplace.
During a conversation with news portal Fortune, Allaire said, “Well, [business] is down. When there’s not volatility, or prices are down, then volumes are down.” Despite that, he said, Circle and by extension Poloniex is doing fine. The CEO added, “We had very significant growth year last year, even though there was a crypto bear market.”
Last year, Circle had introduced its stablecoin, US Dollar Coin (USDC) in October. At the time, Allaire had said, “It unlocks an incredible amount of power for the dollar. It’s basically a dollar that operates on blockchain.” Ethereum is the best bet but it’s not necessarily the end game. For now it’s specifically on Ethereum, Allaire had added. The USDC will be regulated as a registered Money Services Business under U.S. money transmission laws, and as a virtual currency, it will be regulated under its New York BitLicense. It will also be audited every month and every entity who wishes enroll and issue USDC will be held to the same regulatory standards, with no exceptions.
The CEO, while talking to the news portal, dismissed away speculations that the value of the company had fallen to $1 billion, compared to last year, when it was privately valued at $3 billion. He said, “I can’t comment on specific transactions or specific prices or things like that, but the way that was characterized was inaccurate. Just because someone lists shares on a market, “that doesn’t mean they’re actually trading,” he added.
When he was asked about, Facebook’s plans to launch a stablecoin and if he was threatened by it, Allaire stated, “I think it’s a great sign that major Internet companies are starting to look at issuing cryptocurrencies. That’s very, very positive in our view overall.”
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