The CEO of USD Coin (USDC) issuer Circle says that the concept of crypto offering more transparency than traditional finance still holds amid the current fiasco in the industry.
In a new interview on Yahoo Finance Live, Jeremy Allaire says that the blockchain-based decentralized system that came out of the 2008 financial crisis continues to carry on its use cases.
The problem is that centralized entities now dominate the crypto space.
“The irony here is that some of the biggest financial institutions that have been built up in the crypto space are very centralized and opaque. Most of them operate offshore without any real regulatory supervision and frankly, most of them focused on creating platforms for speculators and creating platforms that are fundamentally focused on people who are speculating on digital tokens, so that is certainly not what the promise of this technology represents.”
The CEO’s statement comes days after one of the industry’s largest centralized exchanges filed for bankruptcy following a run of depositors. The downfall of FTX marks the latest blow in crypto with markets already from massive losses as a result of the bear market.
Allaire says that crypto has become a primarily speculative industry and it is time to move forward.
“It underscores the need now, more than ever, to focus on pivoting from this speculative value phase of crypto, which has produced some spectacular gains but also some spectacular failures and losses and move on to the utility value phase, which is so critical and which builds on that fundamental-anchored philosophy around building a public transparent and auditable financial infrastructure on top of these blockchains.”
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