• Circle Recommends Central Bank of Ireland Adopt Public Blockchains for Consumer Protection: USDC issuer Circle has submitted a response to the Central Bank of Ireland highlighting the benefits of blockchain-based financial services for consumers.
• Benefits Of Blockchain Technology For Consumer Protection: Circle listed a series of benefits of blockchain technology in relation to consumer protection, including increased competition, disaggregation of financial services, privacy protection, improved financial literacy through transparency and the ability for regulators to track on-chain data.
• Recommendations On How Financial Supervisors Can Support Innovation While Ensuring Consumers‘ Best Interests: Circle recommended how financial supervisors can support innovation while protecting consumers‘ best interests including informing consumers about market abuse/anomalies by tracking and analyzing real-time blockchain transaction data.

Overview

USDC issuer Circle has submitted a response to the Central Bank of Ireland highlighting the benefits of blockchain-based financial services for consumers. The stablecoin provider listed a series of benefits of blockchain technology in relation to consumer protection. It also offered recommendations on how financial supervisors can support innovation while ensuring consumers‘ best interests.

Benefits Of Blockchain Technology For Consumer Protection

Circle listed a series of benefits that public blockchains offer in relation to consumer protection. These include increased competition, disaggregation of financial services, privacy protection, improved financial literacy through transparency and the ability for regulators to track on-chain data. This would allow them to inform consumers about market abuse/anomalies by tracking and analyzing real-time blockchain transaction data.

Recommendations On How Financial Supervisors Can Support Innovation While Ensuring Consumers‘ Best Interests

Circle recommended that firms offering novel financial products should engage with supervisory authorities before making an official application. Additionally it suggested that regulatory bodies should actively seek out opportunities from innovative companies who are looking to create new types of products or services that will benefit customers. They should also take steps towards educating customers about such products and services so that they are better informed when making decisions about their finances.

Conclusion

Blockchain technology offers numerous potential advantages when it comes to improving consumer protection within the realm of finance. Companies offering novel products should engage with supervisory authorities before submitting an official application so as not disrupt existing regulations or harm customers in any way. Regulators should actively seek out opportunities from innovative companies but also take steps towards educating customers so they can make informed decisions regarding their finances.

References

[1] https://www.cryptoslate