September 27, 2024
By Our Correspondent
The leader of a prominent cryptocurrency platform has advocated for stricter regulations within the industry to protect against fraud and the extreme volatility that has plagued it, as stated in an interview with AFP.
Jeremy Allaire, co-founder of Circle, shared insights on the US-based company’s initiative to introduce a stabilized cryptocurrency, emphasizing that crypto operators have a responsibility to implement safeguards similar to those required in other emerging fields, such as artificial intelligence.
“We have social objectives that we must align with the technology,” Allaire remarked during his recent visit to Circle’s European headquarters in Paris.
Circle provides a USDC “stablecoin,” which is linked to the dollar, along with a euro-pegged version known as EURC.
At present, there are $35.5 billion worth of USDC in circulation.
Like other cryptocurrencies, transactions are documented on a decentralized ledger known as the blockchain, rather than through traditional banking systems.
However, while the value of cryptocurrencies like bitcoin can experience significant fluctuations, the developers of stablecoins aim to maintain a consistent value.
In an era driven by technological advancements, Allaire emphasized the necessity of implementing safeguards for such activities.
“If I am developing software to manage a ballistic missile system, that should be subject to regulation,” Allaire stated.
“If I am creating a large language model with the potential to cause significant societal issues, there must be rules in place for evaluation. The same principle applies to cryptocurrency.”
