Davos Consensus Emerges: Payment Stablecoins Defined as Cash Tools for Payments, Circle CEO Proposes "New Physics of Currency"
During the Davos Forum, stablecoins became a hot topic of discussion, with industry insiders generally believing that stablecoins have the potential to reshape the global payment system, but their potential risks should not be overlooked. Jeremy Allaire, co-founder and CEO of Circle, stated that under regulatory frameworks in the United States, European Union, and others, payment stablecoins are clearly defined as "cash tools" used for payments and settlements, thus issuers are not allowed to pay interest to holders, and he supports this design. Regarding some stablecoin projects subsidizing users in the form of "rewards," Jeremy Allaire believes that the banking industry's concerns about "deposits being drained, credit drying up" are overstated, and pointed out that the rise of money market funds in history did not cause substantial damage to the banking credit system. In addition, Jeremy Allaire proposed the concept of "New Physics of Currency," believing that stablecoins significantly enhance the efficiency of capital circulation and currency turnover rate, suggesting that future societies may only require a smaller scale monetary base to support large-scale economic activities. He also predicts that within the next 3 to 5 years, billions of AI entities will participate in the operation of the economic system. $ETH
