Jeremy Allaire, CEO of Circle Internet Financial, blames regulatory challenges in the United States and concerns about the banking system for the company's stablecoin, USDC.
According to Circle CEO, USDC's Decline Was Due to America
Circle CEO Jeremy Allaire says US pressures are responsible for USDC's decline in value
Allaire said in an interview with Bloomberg Television on Wednesday that investors' desire to "reduce risk from the United States" contributed to the decline in USDC's market value.
USDC remains one of the crypto industry's most trusted stablecoins, but its close ties to the US have caused significant data to depreciate recently.
It shows that the total supply of USDC in the market has declined by nearly $10 billion since the start of the year to its current level of just over $30 billion. Meanwhile, the supply of rival USDT reached a total supply of $82.5 billion.
"We see a lot of global concern about the US banking system," Allaire told Bloomberg. "We're also seeing concerns about the regulatory environment in the US."
The company was caught in the banking crisis in the US earlier this year and announced that its $3.3 billion reserve is stored at Silicon Valley Bank.
USDC, which should have been pegged to one US dollar, briefly lost as much as $0.88 before rebounding a few days later.
The collapse of the SVB came shortly after two crypto-friendly banks in the US, Silvergate Bank and Signature Bank, were shut down by regulators, leaving few banking options for startups in the space.
Just a week after the SVB incident, Circle announced that it had applied for a French crypto-asset license as part of its plan to take deeper roots in Europe.
*Not investment advice.
