At the annual meeting of the new champions organized by the World Economic Forum in China, Jeremy Allaireco-founder and CEO of Circle internet financial, made a significant statement. He predicted that Web3 technologies would be accessible to at least 2 billion users worldwide within two years.
Allaire shared this insight during a panel discussion on the impact of the digital divide on current payment systems. The panelists included Sebastian Claroprofessor of economics at the Universidad de los Andes; Royal Chenvice chairman of Tencent financial technology; Ning Xuanfengsenior partner King & Wood Mallesons; and the host, Spriha SrivastavaUnited Kingdom Bureau Chief Insider.
Web3 represents a visionary concept for the next iteration of the World Wide Web, leveraging blockchain technology. It is often referred to as a decentralized internet, giving users more control over their data and identity.
Web3 applications are usually developed on decentralized networks such as Ethereum, allowing users to interact directly with each other and applications without intermediaries. The wider Web3 ecosystem also includes AI and the metaverse.
The CEO highlighted the rapid maturation of the Web3 industry as the basis for their projection. In particular, one of the main focuses of the industry is the seamless integration of the blockchain infrastructure, allowing users to take advantage of solutions without needing an in-depth knowledge of blockchain technology.
For Sebastián, his concern regarding the digital divide is that while there are good innovative payment tools for users all over the world, misuse of user data will most likely increase.
He said this is possible because standards have not yet been put in place to manage how user data is used, especially in countries in the South.
Penetration of USDC in emerging markets
Furthermore, Jeremy mentioned that Circle’s stablecoin, USDC, serves as an inclusive financial tool for making local and global payments in emerging markets.
He also revealed that the high demand for his company’s payment tool in these regions stems from a desire to use the digital version of the US dollar for receiving money while avoiding the less stable local currencies. Citizens are turning to USDC as a means of preserving value against inflationary pressures on their domestic currencies.
Moreover, he informed the public that USDC effectively bridges the digital divide. The United Nations Refugee Agency (UNHCR) has used USDC to efficiently distribute funds to refugees who have been excluded from their country’s financial system.
He also stressed that users can access and use USDC in their respective countries regardless of whether they have a bank account or not.
Partnership with traditional payment systems
Jeremy also emphasized to the audience that, in addition to working with the UN, Circle has established connections with companies and payment systems around the world. This allows access to USDC, their stablecoin.
The operating structure functions by requiring companies to deposit a certain amount of money, and in return Circle issues them an equivalent value in USDC.
In particular, traditional payment systems such as PayPal and Visa have shown interest in using blockchain technology for global payments and settlements. Jeremy highlighted that our use case with USDC simplifies the exchange of stablecoins for business owners with anyone. To date, Circle has issued and repaid more than 600 billion USDC and facilitated $11 trillion in transactions.
The Circle leader explained the versatility of blockchain technology. While often used to develop payment systems such as USDC, it is also revolutionizing commerce by transforming contract creation and implementation. The introduction of smart contracts on the blockchain will reshape global business.
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