Circle CEO Jeremy Allaire believes that stablecoins have the potential to become the most efficient form of digital money; however, the industry has not yet experienced its ‘iPhone moment’ — a key stage of mass awareness and acceptance of a new technology.
This is reported by Бізнес • Медіа
Discussions Around Legislative Initiatives and Political Influence
Allaire’s remarks came amid increasing discussions in the cryptocurrency community regarding the future of stablecoins in the U.S. financial system. One of the main concerns remains the possibility of avoiding political or commercial control over this sector, especially after the U.S. Senate supported the bill “Guiding and Establishing National Innovation for U.S. Stablecoins” (GENIUS Act).
“The highest utility form of money ever created. But we have not yet reached the iPhone moment when developers everywhere realize the power and potential of programmable digital dollars on the internet as they once did — the potential of programmable mobile devices. Soon,” Allaire noted.
A user on the platform X under the pseudonym Green Eyed Ghost warned about the risk of monopolizing the industry if the GENIUS Act is passed without additional constraints that would promote competition. He believes that the current situation could lead to anti-competitive practices and harm democratic processes in the U.S.
Advantages of Stablecoins and the Transformation of the Banking System
A16z crypto investor Sem Broner emphasized that the openness and programmability of stablecoins foster competition in the financial market. He believes this will reduce the costs of creating fintech services and provide more favorable conditions for users.
ReflectMoney founder Niko highlighted the paradigm shift in the banking sector due to stablecoins. According to him, new technologies allow for effective management of deposits without the need for a large staff, and processes such as storage, mediation, and payments can be implemented with just a few lines of code.
LukeYoungblood.eth, a participant in the Web3 projects MoonwellDeFi and Mamo_agent, pointed out the importance of comparing USDC with traditional payment networks, not just with other stablecoins. He emphasized that USDC is programmable money that can be minted and burned across more than 20 blockchain networks, with a transaction volume reaching $12 trillion per year, enabling instant international settlements.
According to recent data, the number of stablecoin users has reached 161 million, and U.S. Treasury Secretary Scott Bessen predicts that the market capitalization of stablecoins will soon exceed $2 trillion.