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The Circle: The Central Bank of Ireland should embrace public blockchains

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The USDC issuer, Circle, has teamed up with the Central Bank of Ireland to promote the benefits of blockchain to enhance consumer protection.

The Department’s response to the Central Bank of Ireland

The Central Bank of Ireland has published a discussion paper on a review of its Consumer Rights Act, seeking industry feedback on consumer protection issues such as availability and choice of financial products, pro-buyer business, development and disruption, digitalisation, vulnerability and financing. Literacy, environmental issues.

On February 14, Circle sent out its written advice on how public blockchains can enable financial authorities to drive innovation while ensuring clients’ best interests through services such as stablecoins such as USDC and EUROC.

On February 17, Circle, the company creating the USDC stablecoin, also published a response to the Central Bank of Ireland’s discussion paper on consumer protection, which asked for industry input into improving consumer-focused financial products.

The stablecoin provider has outlined several consumer safety benefits of blockchain technology, including increased competition, unbundling of financial services, privacy protection, improved financial literacy through transparency, and the ability for regulators to monitor on-chain data.

Circle announced on its website that Blockchain-based payment systems can separate private and closed stores of data that are collected by financial service providers and large technology companies that can pose risks to the privacy and security of users.

Authorities must alert consumers to market fraud or anomalies

Circle provided additional advice on how financial regulators can encourage innovation while preserving the interests of clients.

It recommended authorities engage in crypto-native activities, including examining on-chain data and evaluating digital assets according to their token design with industry advice, taking into account diverse asset types, activities, risks and incentives.

Circle proposed a proactive approach that includes rewarding companies and offering revolutionary financial products to enhance communication with authorities before formal applications are submitted.

Companies dealing in digital assets can use the regulatory sandbox to test new approaches and technologies in collaboration with regulators.

The stablecoin issuer argued that the strategy could encourage companies to interact with authorities and regulators to ensure that companies offering financial products act in the best interest of their customers.

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