It would give the Federal Reserve power overAllaire told Bloomberg that US policymakers need to focus on creating an efficient framework that would introduce a digital dollar into the core economy.
In his view, this would be especially beneficial at a time when global trade partners seem to be supporting a non-dollar trade regime, though"So something that could be held with the central bank or in short duration T-bills and other things," he said."And if you had that and you had a way to regulate that at a federal level, that would be an ideal kind of framework for a company like Circle and for a digital currency like USDC.
The CEO's calls for further regulation also come after March's banking turmoil exposed stability concerns for such tokens. With $3.3 billion of USDC reserves stored in Silicon Valley Bank, the currency lost $13 billion in market cap and was temporarily unpegged from the dollar.