On Monday (December 28), Jeremy Allaire, Co-Founder, Chairman, and CEO of FinTech firm Circle, talked about the drivers for Bitcoin’s current bull run.

His comments came during an interview with Melissa Lee on CNBC’s “Squawk Box“.

Allaire had this to say about Bitcoin:

I think that the drivers are things that we’ve all been talking about for a long time, which is institutional capital, background investors who are focused on what is taking place with sovereign debt, what is taking place with the debasement of currencies. These are major considerations as people think about new forms of stores of value.

People often make a reference to Bitcoin is eating market share from gold, and you can see the charts and see how that looks, but I think actually what we’re seeing ultimately is there’s a hundred trillion dollars of sovereign debt… and one has to ask themselves if those are the instruments for the next 50 years.

With regards to fiat-backed stablecoins, such as USD Coin (USDC), the Circle CEO said:

Look, there’s sort of investment assets and transaction mediums, and our belief has always been that the predominant reserve currencies would best be represented as fiat digital currencies… and so whether it’s something that’s gonna price a bond or is going to be used as a day-to-day payment, we need these traditional liabilities of central banks could be represented as digital currency forms.

That’s what’s giving birth to stablecoin arrangements like USDC and CENTRE which governs it, and those are exploding. USDC has grown like 600% this year, and we’re in the very early stages. We expect ultimately there’ll be trillions of dollars of value in stablecoins in the coming years.