Circle chief promotes stablecoins for artificial intelligence economy

In an interview with CNBC, Circle CEO Jeremy Allaire downplayed Bitcoin's relative price performance, stating that he focuses on stable digital currencies rather than volatile digital commodities. He emphasized that stablecoins serve utility functions such as payments, settlement, lending, and investment, and noted increasing usage on blockchains including Arc, which Circle deployed in September.

Allaire argued that autonomous artificial intelligence software agents will drive future economic activity and generate structural demand for digital dollar rails, though he did not provide specific volume projections for this use case.

The remarks come as federal banking regulators at the Office of the Comptroller of the Currency finalize standards under the 2025 GENIUS Act. The proposed framework mandates full reserve backing for stablecoins, par redemptions within two business days, and prohibits issuers from paying interest to token holders. While Allaire expressed confidence in the law's bipartisan stability, traditional financial institutions are entering the market, with 21 banks backing a joint stablecoin issuer.