Circle CEO Dismisses Stablecoin Stability Concerns as ’Absurd’
Circle CEO Jeremy Allaire has forcefully rejected claims that interest-bearing stablecoins threaten banking sector stability. Speaking at Davos, Allaire compared stablecoins to government money market funds, which coexist with traditional banks without destabilizing credit markets.
"The argument is totally absurd," Allaire stated, noting that money market funds have grown to over $7 trillion without disrupting bank operations. His comments push back against regulatory concerns that yield-bearing digital assets could trigger mass deposit withdrawals.
The debate emerges as stablecoins increasingly compete with bank deposits, particularly during periods of higher interest rates. Allaire's defense highlights the growing tension between innovative crypto products and traditional financial safeguards.
