At the World Economic Forum, Circle CEO Jeremy Allaire rejected claims that stablecoin yields could spark bank runs, pointing to money market funds and broader shifts in finance.
Jeremy Allaire, CEO of the publicly listed stablecoin issuer Circle, said interest payments on stablecoins do not pose a threat to banks.
Speaking Thursday at the World Economic Forum in Davos, Allaire described concerns that stablecoin yields could cause bank runs as “totally absurd,” citing historical precedents and existing reward-based financial services already in use.
“They help with stickiness, they help with customer traction,” Allaire said, adding that interest itself is not large enough to undermine monetary policy.