Circle to Irish Central Bank: Blockchain Makes Financial Services More Open, Competitive; Stablecoins Drive Global Prosperity!

The fintech company Circle wrote to the Central Bank of Ireland last week, stating that adopting blockchain technology in financial services would make them more open, transparent, and beneficial for consumer protection. They also mentioned that stablecoins could bring significant benefits to consumers worldwide.

Circle's Valentine's Day Letter

Circle responded to the Central Bank of Ireland on February 14.

The company believes that adopting blockchain technology in financial services would make the industry more open and transparent, increasing competition and providing consumers with more choices.

The low transaction friction costs on public blockchains and digital currencies (USDC/EUROC) are core drivers of global economic prosperity, benefiting consumers worldwide, which is the direction Circle continues to strive towards.

Circle views public blockchains as "open," fostering increased industry competition. Interoperable blockchain features also facilitate product integration, enabling services to be stacked on top of each other.

Given the ability to accommodate various services, regulatory bodies should provide different frameworks for different financial products such as asset custody and brokerage, and encourage interaction between startups and regulators through regulatory sandboxes to promote innovation.

While encouraging innovation, regulatory authorities should also track and analyze blockchain data in real-time to monitor market anomalies and protect consumers.

Circle's six key points include:

1. Blockchain technology enhances competition and provides more choices
2. Central banks should establish different regulatory frameworks for various financial services
3. Encouraging interaction between blockchain startups and regulatory bodies
4. Public blockchains help combat illicit finance
5. Transparent blockchain data helps consumers understand ongoing financial activities
6. Regulatory bodies should be more proactive, tracking and analyzing blockchain data to inform consumers of risks