Jeremy
Allaire, an American technologist and internet entrepreneur who is the CEO and
founder of a digital currency company called Circle, has proclaimed the
advantage of stablecoins over central bank digital currencies (CBDCs).
Speaking to
newsmen, this co-founder of Allaire Corporation advised that Beijing should
consider allowing for Chinese Yuan (CNY)-backed stablecoins if it wants to
internationalize its currency.
“If
eventually the Chinese government wants to see the RMB used more freely in
trade and commerce around the world, it may be that stablecoins are the path to
do that more than the central bank digital currency,” he said.
Despite
saying that CBDCs and stablecoins are complimentary, Allaire views stablecoins
as the superior choice.
However, because
capital controls and a prohibition of the free convertibility of the yuan are backbones
of its economic policy, analysts are of the view that authorities in China
would be hesitant to authorize such a plan.
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