Libra could lead to more positive crypto regulations, says Circle CEO

06 Jul, 2019 | Updated: 06 Jul, 2019
by David Robb
Opinion
Libra could lead to more positive crypto regulations, says Circle CEO

The CEO of payments company Circle recently shared his thoughts about Facebook's Libra project. Jeremy Allaire believes that the launch of the stablecoin could usher in a new wave of crypto-friendly regulation.

In an interview with Bloomberg, the Circle CEO claimed that Libra would be "huge in terms of awareness" for the crypto space, and could turn a whole new wave of users on to the potential of decentralized finance. He also believes that stablecoins in general will see a growth in adoption in the near future, eventually becoming the native currency of the internet.

Compared to Circle's own crypto, USD Coin (USDC), Facebook has a notably different type of technology model. Allaire points out that Libra will run on a "closed-loop" permission scheme, as opposed to the digital currencies based on the public internet like USDC, which his firm developed in collaboration with Coinbase.

Allaire believes that Libra's development could lead to regulatory frameworks at the national level that will help the progress of cryptocurrency sector, expanding focus away from the limitation of risk and investor protections that have concerned most regulators up to this point. He claims that crypto and blockchain are "the fabric of the 21st-century economy, and there’s an opportunity to put in place policy that allows us to flourish on a massive scale in the same way that the internet flourished in the mid- to late-nineties and policy was really vital to enabling that." 

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