A faster, safer and more accessible way to send money around the globe

The Internet’s disruptive force has reshaped commerce across borders, and now, payments and financial services are undergoing the same game-changing shift – becoming faster, more accessible, and more affordable for people and businesses around the world. 

According to Mr Dante Disparte, chief strategy officer and head of global policy at Circle Internet Financial (Circle), public blockchains and digital currency hold the potential to not only boost economic prosperity but also foster financial inclusion on a global scale.

He added that regulated stablecoins and Web3 technology are the key elements in a new, unified infrastructure for payments, commerce and capital markets that are seamlessly integrated into the fabric of the Internet itself. They form the foundation of a new “Internet of money”, enabling the movement of financial value anywhere, anytime, and almost instantly, via an Internet connection. 

“These emerging forms of Internet-native money will enable the unbanked to access financial services, receive payments and engage in global trade with nothing more than a smartphone and Internet access,” said Mr Disparte. “They also unlock the potential for international remittances, which serve as a vital force for economic development.” 

A MORE RELIABLE WAY TO SEND MONEY

To safeguard consumers’ interests in a fast-evolving digital financial landscape, Circle is a strong proponent of responsible and globally applicable stablecoin rules that ensure transparency, security and compliance with financial regulations. 

To cater to enterprise clients like Singapore-headquartered superapp Grab and convenience store chain FamilyMart in Taiwan, Circle offers a suite of Web3 services – such as programmable wallets and a smart contract platform – that enables traditional firms to adopt blockchain technology while maintaining security and reliability. 

These pre-built tools simplify the development process needed to create and scale decentralised applications, allowing businesses and developers to bring their innovations to market quickly through integration with Circle’s digital currency, USDC. This stablecoin, pegged at a 1:1 rate to the US dollar, has already been adopted in digital wallets in over 190 countries. 

“Not all stablecoins are created equal – a key difference between Circle’s offering and other stablecoins on the market lies in how they are regulated, the assets that back them and their transparency,” explained Mr Disparte. “USDC has enjoyed a standard-setting approach to regulatory clarity from inception. Now, over five years later, we see clear operating, regulatory and financial integration standards emerging around the world”.

Through Circle’s permissionless Cross Chain Transfer Protocol (CCTP), USDC flows natively across different blockchains, making it more interoperable, secure and liquid. 

“This enables developers to build a stable foundation with a fully reserved digital dollar they can trust while continually increasing access to USDC. At the same time, it paves the way for new consumer-scale Web3 apps that make USDC for everyday payments easier,” said Mr Disparte.

AN OPEN FUTURE OF DIGITAL FINANCE

Besides protecting consumers from risks like fraud or market instability, regular reporting and reserve requirements offer consumers greater peace of mind regarding their digital assets. 

As businesses embrace digital financial services, a clear regulatory framework also encourages partnerships between traditional banks and digital financial service providers, enhancing the former’s ability to serve a broader customer base, as well as catalyse innovations in the global financial system.

Mr Disparte said that with clear rules in place, such partnerships may spur job creation, stimulate economic activity and future-proof various sectors. For instance, it could help a manufacturing company that wishes to expand globally seamlessly integrate digital payments in its supply chain, reducing transaction costs and settlement times. He is optimistic about the prospects of an open system enabled by regulated stablecoins and Web3 technology in the Asia-Pacific region, and foresees a gradual shift of payments, commerce and trading to this new layer over time. 

“With Asia’s readiness for digital assets, forward-thinking leadership and a robust ecosystem, regulated stablecoins and Web3 technology have found fertile ground for growth,” he said. “We are excited about the future of regulated stablecoins and Web3 technology in the region.”

Learn more about the future of finance at the Singapore FinTech Festival from Nov 15 to 17, 2023.