Jeremy Ellire: “Stablecoins can become a model of a hybrid digital currency”

The Circle CEO expressed his opinion on the collapse of the UST rate and the development prospects of other stablecoins, including USDC.

Jeremy Allaire in interview He told the Protocol that he was shocked at the speed of the collapse of the UST algorithmic stablecoin, which has recently been very popular with investors. The Circle leader had long suspected that UST was not viable, so it could collapse like a house of cards at any moment, Ellire tried to convince the interlocutor. When asked if the businessman tried to warn Terraform Labs founder Do Kwon about a possible collapse of the stablecoin, he replied that Kwon reacted aggressively to any concerns about the security of UST and was “closed to interact.”

Regarding USDC, Ellire said that Circle is committed to creating a model that is as trustworthy and transparent as possible. In order for the USDC pegged to the US dollar to operate safely and reliably, he said, the company cooperates with regulators and audit firms. Ellire noted that the company does not aim to make USDC the “Holy Grail” of stablecoins, and Circle may switch to an algorithmic version of USDC in the future. Such stablecoins are able to function without the participation of a centralized issuer and state regulation, the businessman assured.

However, according to him, this may take another 20 years, so it is better to use the “hybrid digital currency model” to start with. The Circle CEO’s idea is that government bonds, including Treasury bonds and US Federal Reserve (FRS) cash, can be tokenized. This will create a variant of a public digital currency compatible with the current financial system.

Jeremy Ellire has previously stated that asset tokenization will become especially popular in the coming years, as it will increase their liquidity and availability without any systemic risks.