Stablecoins: Not Money, Just… Pipes?

by

Right. So, Jeremy Allaire, the CEO of Circle (who, let’s be honest, probably has a very comfortable chair), has declared that stablecoins aren’t really trying to be money. No, no. That would be terribly… competitive. Apparently, they’re more like the plumbing. Shared infrastructure. Like the roads everyone drives on, except instead of cars it’s… well, numbers representing money, which is arguably less interesting than cars. Apparently, anyone can build on this “infrastructure”, which sounds suspiciously like politely letting other people take credit for your hard work.

Key Observations (because ‘Takeaways’ sounds far too decisive)

  • Circle is attempting to rebrand stablecoins as exceptionally boring, yet essential, financial plumbing. This is a surprisingly effective strategy, if you’re aiming for beige.
  • They seem to think banks and credit card companies are friends now. This must be a Tuesday.
  • Future money movement will be automated and cheap, because apparently, everything always is in the future. It’s a law of economics, or something.

The idea, it seems, is to avoid upsetting anyone important. No picking fights with banks, payment companies, or those chaps running the crypto exchanges. Circle’s master plan involves hoping everyone will just agree that USDC is the sensible, neutral option. Neutrality, they believe, breeds trust, and trust breeds… well, more numbers moving through the pipes. It’s a very logical plan, assuming people are entirely and utterly reasonable.

Why Circle Would Rather Not Have A Payments Rumble

See, the existing payment behemoths aren’t obstacles, they’re… accelerants. Which is a very generous way of saying “they have all the customers.” Rather than trying to replace the existing system (which, admittedly, is a bit clunky), Circle is hoping to hook into it. Partnerships with traditional networks mean stablecoins can sneak into the real world without causing too much of a fuss. It’s the financial equivalent of sneaking biscuits past the guard dog.

Allaire also envisions a future where robots do all the transactions. And, naturally, this will cost practically nothing. Because robots work for free, obviously. In this brave new world, today’s payment systems will look delightfully antiquated, and programmable money will quietly sort everything out in the background. It sounds… efficient. In a slightly terrifying sort of way.

Basically, Circle isn’t worried about winning the payments game today. They’re playing the long game. They’re betting the farm on the rules changing entirely, and hoping USDC is still around to cash in the dividends. Ambitious. Or possibly just optimistic.

The Market’s Getting Crowded (and the Regulators Are Watching)

This whole “infrastructure” strategy is unfolding just as everyone else decides to jump into the stablecoin game. USDC is still a big player, but now it’s facing competition from crypto startups and, rather unsettlingly, actual banks. Fidelity, Stripe, MoonPay… they’re all building their own pipes. This is going to get messy. Like a plumbers’ convention gone wrong.

And then there’s regulation. Apparently, something vaguely resembling rules might actually be happening in Washington. Allaire seems optimistic, suggesting these rules will benefit everyone – even the banks. Which is either incredibly naive or a masterful negotiating tactic. Time will tell. Probably involving a lot of legal paperwork.

In this environment, Circle’s neutrality might actually be useful. If stablecoins become officially “infrastructure”, the companies regulators trust (which isn’t always the same as the biggest) might end up running the whole show. Even if they never get to boss consumers around. It’s a strangely anti-climactic power grab, really.

Disclaimer: This article is for informational purposes only. Don’t use it to make financial decisions, unless you enjoy living on the edge (and possibly in a cardboard box). Coindoo.com is not responsible for any resulting misfortunes. Consult a professional before risking anything more valuable than a slightly stale biscuit.

Read More

2026-01-23 11:45