Goodbye, dollar bills? How cryptocurrencies might soon replace cash as we know it
The eternal discussion about a cashless society is an absolute perennial favorite that is also hotly debated in the crypto scene. Circle’s CEO told CNBC in an interview that he believes that all fiat currencies could soon be replaced by cryptocurrencies, creating a cashless society.
Jeremy Allaire, the current CEO of Circle, a Goldman Sachs-backed startup that has brought the cryptocurrency exchange Poloniex among other things, said in an interview with CNBC that he believes that all fiat currencies will be replaced by cryptocurrencies:
“Our view is that all fiat currency will be crypto,” Jeremy Allaire, who co-founded Circle in 2013, told CNBC in an interview on Monday. “It seems inevitable at this point.”
According to Allaire, in the future, it will be inevitable that society will move on to a cashless future. Each fiat currency is to be mapped to a blockchain, whether it is the American dollar or the pound sterling.
Circle has announced plans to launch another “stablecoin,” the “USD Coin,” which is tied to the value of a dollar. To realize this project, Circle has raised more than $ 110 million in a recent round of financing.
The goal is to accelerate dollar transactions by using blockchain technology, which maintains a continuously growing digital transaction record and reduces the volatility of most cryptocurrencies.
The token is to be created on an open source platform called “Center,” which will be supported by other big players, such as large financial institutions. According to Allaire, the USD Coin is to connect the financial processes of the old world with the new blockchain technology and its advantages and potentials. Allaire wants to create a new infrastructure for the current financial system through the use of stablecoins. He also wants to create other tokens that are tied to the euro or the British pound:
“Our focus with fiat stablecoins is we really think of it as a core building block for a crypto native global digital economy,” Allaire said.
“Our interest is in how do we take all of the tasks involved in the financial industry and move those onto a crypto native infrastructure.”
The project is still in its infancy, but the development shows quite clearly that the cash should be replaced in the long term by digital currencies. The USD Coin is next to Tether and the increasingly popular TrueUSD Coin another Stablecoin the first on the market must assert. Due to the manipulation allegations of Tether Stablecoins are in a very bad light in the crypto market.
It remains to be seen how fast the project actually progresses and what further developments can be observed in this segment.
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