Airwallex CEO’s Call to Short Circle Sparks Market Debate – Coincu

Jack Zhang, CEO of Airwallex, posted on Platform X (formerly Twitter) on June 20, urging shorting Circle, the issuer of USDC. Zhang’s statement questions stablecoins’ role in reducing foreign exchange costs.

Zhang’s stance raises crucial discussions regarding stablecoin benefits in forex markets, potentially affecting Circle and broader fintech perspectives. Jack Zhang’s remarks about Airwallex’s position on stablecoins have drawn considerable attention. In his recent post, Zhang declared:

Airwallex CEO Calls for Shorting Circle’s USDC

This announcement is reshaping debates around the potential savings from using stablecoins over traditional forex markets. Zhang argues that off-ramping stablecoins incurs higher costs than interbank rates, marking another critique in the fintech sector about stablecoin practicality.

Zhang’s commentary has spurred discussions within the market about the viability and efficiency of stablecoins like USDC. While major price movements in stablecoins were not immediately observed, Zhang’s influence could shape perceptions and adoption strategies across the sector.

“It’s time to short Circle,” adding a direct challenge to the efficiency of stablecoin adoption. His earlier comments highlight his skepticism about stablecoins’ real-world cost benefits.

Stablecoin Market Faces Intensifying Scrutiny

Did you know? Did you know that fintech criticism has previously led to significant introspection within the stablecoin industry, highlighting regulatory risks and cost debates much like Jack Zhang’s latest comments?

According to CoinMarketCap, the current data for USDC reflects a stable price of $1.00 and a market cap of 61.40 billion. The market dominance stands at 1.89%, with a 24-hour trading volume nearing 6.71 billion despite a drop of -35.58%. Price remains largely stable over recent periods.

Jack Zhang, Co-founder and CEO, Airwallex, remarked:

“I don’t see how stablecoins reduce costs — off-ramping from stablecoins to fiat is often far more expensive than using the FX interbank market. Even though stablecoins are less volatile, I don’t see how they benefit B2B transactions at scale.”