Jeremy Allaire, CEO, and co-founder of Circle, an instant money transfer service, divulged in a recent interview that Libra, which is backed by the Facebook team, will operate under a closed-loop permission scheme with its own regulatory requirements.
Libra is a cryptocurrency designed by the Facebook team and supervised by Libra Association, an independent non-profit membership group whose members include Mastercard, PayPal, Visa, Booking Holdings, eBay, Facebook, Uber, Spotify, Vodafone, Coinbase, Xapo, and other reputable corporations.
Allaire mentioned in the discussion that Libra has a different stablecoin implementation with their own unique distinctions in terms of regulation compared to other stablecoins operating on the public market. Stablecoin generally refers to a class of cryptocurrency that can offer price stability by backing from reserve assets.
According to Allaire, they have been running with stablecoins in public market operations in their project USDCoin or USDC. It is a product offered by Circle and Coinbas, a US-based cryptocurrency exchange.
He also added that he hopes that the launch of Libra in the cryptocurrency world will trigger the government to create national policies that can regulate digital assets.
In the interview, Allaire adds, “Our view is that crypto and blockchains represent the fabric of the 21st-century economy, and there’s an opportunity to put in place a policy that allows us to flourish on a massive scale in the same way that the internet flourished in the mid- to late-nineties.”
Jeremy Allaire believes that there is still much to be done in their industry. He thinks that cryptocurrency is defined too broadly, and distinct regulations must take place soon, to clean up the cryptocurrency world. Also, he adds that he envisions that stablecoins will receive the same mass acceptance that is currently experienced by Bitcoin.
