Circle CEO sees growth for non-sovereign currencies

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Jeremy Allaire, Circle’s CEO, believes non-sovereign cryptocurrencies such as bitcoin will continue to see growth despite the proliferation of new forms of digital assets, such as stablecoins and Facebook’s Libra, Cointelegraph reports.

Allaire was interviewed on CNBC’s Squawk Box on 24th June where he argued, “the cryptocurrency landscape will not evolve in a “winner takes all” direction, but that a range of different digital assets with varying degrees of autonomy and regulation will become broadly used by individuals and investors alike.”

He also made a clear distinction between digital assets, setting stablecoins and other asset-pegged cryptocurrencies — e.g. Libra or the dollar-pegged stablecoin USD coin — against non-sovereign cryptocurrencies such as bitcoin: “Individuals and institutions are going to have crypto finance accounts where they’re going to hold all these different assets and be able to send and receive all of them. It’s not going to be a winner takes all model.”

He also discussed how people would use crypto for everyday purposes. He suggested people may need to denominate in their salaried currency, or for transactions such as taxes and that fiat-pegged assets will see increased adoption.

On the other hand, he sees a bright future for non-sovereign cryptocurrencies such as bitcoin, because there is “an increasing recognition of the value of having access to a censorship-resistant and highly secure digital asset such as bitcoin.”

He also gave his personal view on the current state of the crypto market and how it has risen from the depths of the crypto winter. He says that back then long-term investors began to build significant positions in core digital assets and that this is now being supported by “rising fundamentals of cryptocurrencies’ technology, the emergence of retail and institutional platforms, and new regulatory frameworks taking shape.”

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