Circle Advocates for Public Blockchains in Ireland
USDC issuer Circle has collaborated with the Central Bank of Ireland to promote the advantages of blockchain for enhancing consumer protection. In response to the Central Bank of Ireland’s Consumer Rights Code Review, Circle provided written advice on how public blockchains can enable financial authorities to promote innovation while guaranteeing customers’ best interests through services like stablecoins like USDC and EUROC.
USDC issuer, Circle, has collaborated with the Central Bank of Ireland to promote the advantages of blockchain for enhancing consumer protection.https://t.co/uvJ63Z2uHl
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Blockchain Benefits for Regulators
In their response to the discussion paper on consumer protection, Circle outlined several advantages of blockchain technology for consumer safety, including increased competition, financial service dis-aggregation, privacy protection, improved financial literacy through transparency, and the capacity for regulators to follow on-chain data. They also suggested a proactive approach that includes rewarding firms and delivering revolutionary financial products to promote communication with authorities before formal applications.
According to Circle, blockchain-based payment systems can dis-aggregate the proprietary and closed-loop data stores that are amassed by financial services providers and huge tech companies that can pose hazards to the privacy and security of users. The stablecoin issuer argued that the strategy might encourage businesses to interact with authorities and regulators to ensure that companies that provide financial products behave in the best interests of their clients.
On-Chain Data Examination for Regulators
Circle offered additional advice on how financial regulators could encourage innovation while upholding customers’ interests. They recommended that authorities take part in crypto-native activities, including examining on-chain data and evaluating digital assets according to their distinctive design with industry advice, taking the varied asset kinds, activities, risks, and incentives into account.
Companies that deal in digital assets could use a regulatory sandbox to test new methods and technology in collaboration with regulatory and oversight bodies. The stablecoin provider argued that this strategy might encourage businesses to interact with authorities and regulators to ensure that companies that provide financial products behave in the best interests of their clients.
Focus on Consumer Protection
Circle’s collaboration with the Central Bank of Ireland highlights the potential for blockchain technology to enhance consumer protection and promote innovation in the financial sector. With the growing popularity of stablecoins like USDC and EUROC, it is becoming increasingly important for regulators to adopt a proactive approach that balances innovation with consumer protection.
