In an interview with Bloomberg, Allaire commented on the latest developments in the crypto space, including the introduction of the Libra coin. He qualified it as a “very massive inflection point” that will have “impact across the board.” Ultimately, it will bring the whole crypto verse into the limelight and help “access the benefits of crypto within the financial system.”
He also took the time to emphasize that public blockchains that are capable of supporting billions of users with mainstream applications in finance are really just emerging. According to him, many in the industry are working on creating so-called third generation blockchain models. The latter are all about scalability and the aim of blanketing the world with the benefits of crypto. FB’s attempt is just one take in that direction, but definitely not the only one. That said, he believes that the consortium model that FB is applying is the right one.
Allaire went on to the answer the question “what is a benefit of a cryptocurrency that doesn’t really offer censorship-free transaction?” He believes that both types of crypto — fiat backed or BTC like — are going to become more adopted. He elaborated on the reason:
“There’s a really key difference between stablecoins that run on kind of closed-loop permission schemes — which is how Libra is being proposed today, at least in its initial incarnation — versus stablecoins that can run on the public internet.”
Crypto needs to flourish
During the interview, Allaire addressed the recurrent issue pertaining to crypto regulation. He said that currently there’s a “regulation by enforcement” on an “ad hoc basis.”
In his view, the watchdogs should focus not only on the risks but also on a more positive attitude. Allaire deems blockchain and crypto the fabric of the 21st century. Hence the industry needs a base to flourish on. He hopes that Libra will accelerate the development of a nation-wide policy.
When asked about the use cases of USDCoin, Allaire described it as “a payment and settlement method within the digital asset markets.” He noted that stablecoins can move at the speed of the internet. Their usage comes at a minimum cost and he expects them to proliferate.
Previously, Allaire emphasized that a lack of clarity from the SEC is a big hurdle for the industry. And called for global crypto rules. He also believes that blockchain and crypto will change society’s fundamentals and suggested that ETH will become the major driving force for the industry.
