Putting The Stability Back Into Stablecoins
Public Key
Is the Circle Business Dependent on Return Generating Assets?
Circle has 55 billion dollars in short term tea bills or cash sitting in us. That is a very different model than what banks conduct with fractional lending. And those capital buffer requirements are written for that fractional lending model. So i think what we've started to see emerge in what's coming out of the hill is more of a same risk, same rules model.
Putting The Stability Back Into Stablecoins
In this episode of Public Key, our host, Ian Andrews (CMO at Chainalysis) is joined by Caroline Hill, Director of Global Policy and Regulatory Strategy, at Circle, who brings her 7+ years of US Treasury Department experience to discuss the regulatory regime around stablecoins, the impact of rushing to create CBDCs and Circle’s ambition to be the most regulated stablecoin.
The conversation highlights that not all stablecoins are created equal and touches on the epic failure of the Terra LUNA stablecoin and how more transparency regarding reserves is needed. She also covers some of the exciting and innovative products coming out of Circle including Verite and the Euro stablecoin, EUROC.
Minute-by-minute episode breakdown- (2:15) – Caroline’s origin story going from detecting sanction evaders to innovative financial technologies helping with remittances
- (5:45) – Why the USA financial system is fine but far from being innovative leader
- (9:45) – Does international policy and regulation in crypto foster financial innovation
- (14:11) – The stability behind USDC and the use case for stablecoins
- (18:25) – Would CBDCs be a good idea for government, private sectors, traditional FIs and financial inclusion?
- (23:55) – Is China weaponizing their CBDC and making mitigating sanctions evasion more difficult
- (25:00) –Not all stablecoins are stable and not all created equally
- (28:15) – How digital identity can be privacy preserving yet meet AML requirements without creating vulnerable honeypots
- (30:10) – Conducting “follow the money” investigations with stablecoins
Check out more resources provided by Chainalysis that perfectly complement this episode of the Public Key.
- Report:The Chainalysis State of Web3 Report
- Webinar: The State of Web: Watch On Demand (with Ethan McMahon and Kim Grauer)
- Circle Blog: Circle Yield. Built Differently.
- Circle Blog: Reflections on Europe’s Markets in Crypto-Assets Framework (MICA)
- Website: Verite: Decentralized identity for crypto finance
- Circle Blog:Circle’s newest stablecoin, Euro Coin (EUROC) is here
- Circle Blog: Information about Circle’s reserves and redemptions
- Ian Andrews * Host * (Chief Marketing Officer, Chainalysis) https://www.linkedin.com/in/ianhandrews
- Caroline Hill (Director of Global Policy and Regulatory Strategy, Circle) https://www.linkedin.com/in/caroline-hill-4a1b7814
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