Author: Mastercard
Compiled by: Felix, PANews
Circle is best known for its stablecoin USDC, which currently has a circulating market cap exceeding $77 billion, making it one of the largest stablecoins globally. However, Circle's ambitions extend far beyond this.
Circle is committed to building the necessary infrastructure to make blockchain payments and financial services truly accessible to the average user. To this end, Circle provides developer tools, the Circle payment network, and its self-developed blockchain Arc, aiming to offer blockchain-based payment capabilities to almost any company.
Kash Razzaghi, the Chief Commercial Officer responsible for advancing these partnerships and strategies, stated: "We are building an internet financial platform that can help facilitate and accelerate the shift of funds onto the blockchain."
The transition of financial infrastructure to blockchain promises to make fund flows faster, cheaper, and more transparent. He noted that the task of evolving the entire payment ecosystem is too immense for any single entity to handle alone. Therefore, Circle is collaborating with multiple companies, including Mastercard, to promote the use and acceptance of stablecoins worldwide. It is reported that Mastercard launched a new cryptocurrency partnership program this week, and Circle has joined this initiative.
"This requires a collective effort from the entire community," Razzaghi added. "Mastercard's involvement significantly enhances the credibility of this technology and demonstrates the future potential of the entire industry."
Razzaghi was interviewed by Mastercard shortly after returning from the World Economic Forum in Davos in January. In Davos, he engaged with various figures from the finance and financial services sectors, aiming to attract more participants to the growing blockchain community.
The following Q&A has been edited for clarity and conciseness.
What is your perspective on the current free-floating cryptocurrency market?
The market is volatile, which should be expected. For most of its development, cryptocurrency has been directly associated with speculation. But what excites us is moving beyond that. I don't think trading and speculation will completely disappear—that's not the point. It's about the evolution from speculation to infrastructure. Have we experienced booms in crypto speculation? Yes. Have we experienced turbulent times in crypto speculation? Yes. These cycles have always existed. If someone sells, I believe someone else will buy; it's natural.
What did you hear related to blockchain at Davos?
The discussions were entirely about infrastructure and how blockchain technology and digital assets can solve real-world problems, or enhance the flow of funds, value storage, and access to financial systems and tools. This was the refreshing aspect of Davos this year. As regulations have cleared obstacles for institutional participation, the advantages of infrastructure are becoming increasingly evident. This isn't about speculation; it's about how to use this technology to transfer billions or even trillions of dollars of value instantly, securely, and at low cost, and how to upgrade financial systems and infrastructure that have seen little change in the past 75 years.
The consensus in the discussions was that the entire ecosystem will benefit. Blockchain will assist companies currently operating in financial infrastructure, financial markets, or financial services to grow their businesses and provide better services. For a long time, people have debated, 'Will blockchain technology replace banks? Will it replace credit card networks? Will it replace this or that?' But the reality is, it won't.
What was truly refreshing was that the discussions among ecosystem participants also focused on this. All banks, financial service institutions, traditional exchanges, and card networks are actively embracing this technology because they anticipate that the cost of fund transfers will approach zero, and the speed of fund transfers will be significantly increased.
If we are to overhaul the financial system, where does that leave a company like Mastercard? We have already established a partnership—how do both parties benefit mutually? How does our work benefit consumers and small businesses?
What is Mastercard's core value? It's about providing trust, right? You have built a global trust network. I personally hold a Mastercard. When I swipe my card, merchants can be confident that the funds will be received because Mastercard backs it. In my view, the importance of trust will never disappear. I believe Mastercard's involvement is not only about maintaining and consolidating trust but also about providing more advanced technology for transactions. You make transactions more convenient, more accessible, and remove barriers and intermediaries. You are eliminating friction, and over time, it may become more cost-effective.
Circle's gain lies in the popularization of stablecoins and digital assets. We foresee a future where funds flow on-chain. We believe that in the future, the movement of funds on-chain will be more efficient. Of course, there is still much work to be done in terms of infrastructure, regulation, and compliance; we are not there yet. When Mastercard truly begins to build on-chain businesses and utilize on-chain products to serve its customers, it will accelerate the adoption of digital assets.
What are the main use cases for stablecoins currently?
There are currently three main use cases. In terms of popularity, usage, and growth, the primary use case for stablecoins is trading and investment. If you are engaged in digital asset investment and hold Bitcoin, Ethereum, or other digital assets, using USDC for investment is an excellent choice because you can buy and sell these assets at any time and hold the value in a stable currency like USDC.
The next two use cases, while not yet as large as trading and investment, show remarkable momentum. We believe the next phase of growth and practical application will come from these two areas. Among them, payments (especially cross-border payments) are a significant use case. Whether you are an institution or part of the diaspora, if you need to transfer funds from one country to another, or want to easily move funds from one wallet to another, stablecoins are a great option. Transferring funds on the blockchain can eliminate intermediaries, thereby reducing fees. Settlement times can be shortened from days or even weeks to seconds or minutes. We are seeing a substantial increase in fund flows across various industries. Even large institutions need to move funds from Singapore to New York, and now they can use stablecoins without being constrained by bank operating hours. We believe the application of payments will extend far beyond cross-border payments to all aspects of payments.
The third use case is store of value, which primarily occurs in countries suffering from currency devaluation, such as Iran, Venezuela, or Argentina. These countries experience hyperinflation, and people no longer trust their local currency, preferring to hold US dollars as a hedge.
We believe that the functions of payments and store of value will accelerate this trend, pushing the total market capitalization of stablecoins far beyond what it is today.
When do you think stablecoins will be widely adopted by the mainstream market?
There is a view that mainstream adoption will truly be achieved when stablecoins and this underlying technology as a whole become so foundational that people may not even realize they are holding stablecoins. They will think they are holding US dollars and sending US dollars. We often draw this analogy: when you visit a website and type in HTTP, most people don't understand that technology. They just know they are sending an email. This model of "mainstreaming" does exist, where the underlying infrastructure of stablecoins will be completely simplified into on-chain distribution.
You were the founder of a sports social platform. You worked at the video software platform Brightcove. You also did custom clothing. How have these experiences helped you for your current role?
Career paths are not linear. You benefit from luck and timing, and you also benefit from the expertise you accumulate, which can help you tackle future challenges. So, if you look back at my career, you'll see it blends various fields like apparel, sports companies, video distribution, and cryptocurrency. So, what is the common thread? Entrepreneurship, market expansion, business development, sales. I love creating. I am mission-driven. I enjoy solving problems that can truly impact large numbers of people.
Therefore, when I joined Circle six years ago, I wasn't what you'd call the 'most crypto-native' person. I wasn't a cryptocurrency expert, but when you figure out what this technology can actually do, you become inspired by it and driven by its mission.
Related reading: Circle's Turning Point: Stock Price Doubles, On-Chain Transactions Surpass USDT, Precisely Positioning for Agent Payments
