Dante Disparte, the chief strategy officer and head of global policy of the second-largest stablecoin issuer Circle, has blasted crypto firms that create counterfeits of the U.S. dollar.
According to a Bloomberg report, Disparte called for relevant federal legislation around stablecoins to protect consumers and prevent investors from companies with fake USD.
Circle CSO Criticizes Firms That Counterfeit USD
Disparte said the several bank failures in the U.S. earlier this year drove investors into unsafe and opaque crypto assets overseas, showing the need for sound monetary policy in the United States. He questioned the ability of any company to forge the USD using cryptographic methods, insisting that setting relevant rules would maintain transparency and ensure investor safety.
“Candidly, should anyone anywhere be able to counterfeit U.S. dollar using cryptographic methods, or should there be a rule-set around competing with digital dollars on the internet where the safety and soundness and monetary policy of the United States is respected?” – he asked.
Disparte’s remarks come as Circle’s USD Coin (USDC) sees a slump in its market dominance. The stablecoin, once favored by institutions, was negatively affected by its exposure to the now-bankrupt Silicon Valley Bank and worldwide regulatory scrutiny on crypto assets.
USDC’s supply has declined by more than 50% since June 2022, from $56 billion to around $26 billion. This has also affected its market share, which has dwindled significantly within the same period, while Tether – the largest stablecoin by market cap – continues to gain dominance.
Circle Faces International Markets
While USDC’s numbers are declining, Circle has disclosed its intention to face international crypto markets with Asia as the focus. In June, the company’s co-founder and CEO Jeremy Allaire said Circle is closely observing the regulatory developments in Hong Kong as the city aims to establish itself as a significant center for digital markets and stablecoins.
Most recently, Allaire estimated that 70% of USDC adoption originates from non-U.S. regions, with Asia, Latin America, and Africa leading the pace. However, he believes the U.S. will become a highly competitive market once its regulators embrace the crypto industry.
In the meantime, Circle and Tether are facing competition from newly issued stablecoins like that of digital payments giant PayPal Holdings.
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