Circle CEO Dismisses Bank Run Fears Over Stablecoin Yields

[AIcash]

Circle CEO Jeremy Allaire has pushed back against claims that interest-bearing stablecoins could threaten the banking system, calling such concerns “totally absurd.”

Speaking at the World Economic Forum in Davos, Allaire said interest payments on stablecoins are not large enough to undermine monetary policy or trigger bank runs. He argued that yield features help attract and retain users, much like existing reward-based financial products already offered by banks and fintech firms.

His comments come as US lawmakers debate stablecoin rules under proposals such as the CLARITY Act, which seeks to establish a federal framework for digital asset markets.

Allaire said fears around stablecoin yields ignore historical precedent and exaggerate their potential impact on traditional banking.

[kevin1]

billions of ai agents need a native payment layer. stablecoins are basically the only game in town.