Circle CEO Says USDC Is Not Being Used For Strait Of Hormuz Payments

(MENAFN- Yolo Wire) Circle Internet Group (NYSE: $CRCL) CEO Jeremy Allaire is denying reports that the USDC (CRYPTO: $USDC) stablecoin is being used for transit fees in the Strait of Hormuz.

Speaking at a conference in South Korea, Allaire said it is "extremely unlikely" that the USDC stablecoin is being used as payment for safe passage through the Strait of Hormuz.

Allaire emphasized that Circle operates with strict regulatory compliance standards and works closely with global authorities.

He stressed that this makes it unlikely that a stablecoin such as USDC would be preferred in transactions that carry sanctions violation risks.

According to the CEO, individuals, governments, and organizations prefer to use less regulated cryptocurrencies rather than stablecoins for controversial transactions.

Allaire also pointed out that due to USDC's technical structure, assets at specific addresses can be frozen quickly. He said this makes USDC even more unattractive for countries such as Iran.

The comments from Allaire come after media reports suggested that Iran might demand Bitcoin (CRYPTO: $BTC) or stablecoins such as USDC as transit fees from ships passing through the Strait of Hormuz, where 20% of the world's crude oil typically flows.

Allaire emphasized that the USDC stablecoin is positioned for regulated financial transactions.

Stablecoins are cryptocurrencies whose value is pegged to another asset, typically the U.S. dollar or price of gold. Stablecoins are playing a bigger role in global finance.

CRCL stock has risen 7% in the last 12 months to trade at $89.24 U.S. per share.

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