Circle’s Allaire Explains There Is Difference Between Libra And USD Coin

Circle’s Allaire, the CEO of the company who issued a US dollar-backed stablecoin before everyone, now testified in front of the US Senate where he urged the lawmakers to understand there is a huge difference between the USD Coin and Libra. In today’s altcoin news we take a closer look at how he described it.

Jeremy Allaire is not alone in this battle. The Ripple CEO Brad Garlinghouse also urged the congress not to ‘’paint all digital currencies with one broad brush.’’ The blockchain companies are distancing themselves from Facebook’s crypto project despite that Libra has been perceived good for bitcoin for the amount of attention that it brought to crypto but it has still become a taboo from a regulatory perspective.

Circle’s Allaire described stablecoins as ‘’critical building blocks for the future digital economy’’ but he pointed out that not all stabelcoins are the same. For example, the USD Coin is backed 1:1 by only one fiat currency while Libra is backed by multiple currencies. He stated:

 “While USDC was initially launched with a focus on trading and markets use-cases, similar to Libra, it has been designed to expand into payments and settlement for both consumers and businesses. Because it is built on the most popular smart contract platform, Ethereum, we also expect USDC to be used for financial contracts and other tokenized digital assets.”

Libra is limited to its native blockchain while CENTRE by Circle is the platform on which it built and issued and is now becoming ‘’blockchain agnostic’’ according to Allaire. Of course, the most obvious difference between USD coin and Libra is the year when the stablecoin was launched while Facebook’s coin remains still uncertain:

 “Over $1 billion has been tokenized, and over $500 million redeemed, through our services. US Dollar Coin is now the largest and fastest-growing financially transparent stablecoin issued by regulated financial institutions.”

As noted in the latest cryptocurrency news, Allaire’s testimony before the Committee on Banking, Housing and Urban Affairs could have a huge impact since he already moved his business into Bermuda. He noted:

‘’Without a sound, pragmatic, and agile national policy framework for digital assets, I am concerned that the United States will not be the world’s leader in this critical new technology, that it will continue to fall behind, and that it will not fully reap the benefits of the economic transformation that digital assets will bring.’’