Circle Internet Financial is the world’s second-biggest stablecoin issuer, and according to its latest company update, they have officially announced their goal to become a regulated digital national commercial bank.
With this title, the stablecoin issuer will be expected to give US regulators more oversight of their cryptocurrency business. Currently, the stablecoin’s issuer biggest rival, Tether, is facing a criminal probe by United States prosecutors. This sets in their lead on the campaign to become the national digital bank.
During an interview on Bloomberg television, Chief Executive Officer of Circle, Jeremy Allaire, held that there would be hundreds of billions of dollars in digital currency in a few years. When the industry attains that growth level, the CEO supposes that supervision at the federal level would be most appropriate.
US bank chartering is controlled by the Office of the Comptroller of the Currency (OCC.) A while ago, the OCC had issued some crypto-friendly charters during Trump’s administration but held off issuing these licenses until regulators come up with a unified approach towards crypto.
In the short view, these irregularities cast a lot of doubt on Circle’s campaign in becoming the national digital bank, at least in the near term.
The market value of Circle’s stablecoin linked to the US dollar has recently risen to $27.6 billion, up from $3.7 billion last year. The company has always diligently worked with the country’s regulators to ensure the safety of its funds.
As the company aspires to move towards national-level regulations, Circle will be operating under the supervision of regulators such as the United States federal reserve, the treasury, the office of the comptroller of the currency and the FDIC.
While this dream is valid for Circle, the different authorities require a lot more work before allowing third parties to circulate stablecoins into an existing financial system.