Global Financial System can Adopt Bitcoin: Circle CEO
Three weeks back, the Bank of England Governor Mark Carney on the global reserve currency, the US dollar. The economist said that the world’s reliance on the greenback “won’t hold” and a new global monetary and financial system backed by many more global currencies would replace it. Carney called the bundle a Synthetic Hegemonic Currency (SHC).
The comments sparked a fresh wave of discussions over the dollar’s inability to offer a cushion to growing macroeconomic risks. Many suggested bringing back the old Gold standard system, while others said that China’s yuan should become the ringleader of the next global reserve asset reserves pool.
Jeremy Allaire, the CEO & co-founder of Boston-based Circle, sees the emergence of fiat-backed digital currencies as a significant step towards attaining an SHC-like reserve. Speaking to , Allaire said that China is already advancing in creating a digital yuan, which would propel the currency’s use not only inside China but across international borders.
“This becomes a mechanism by which (the yuan) can be used in everyday transactions all around the world,” added Allaire.