Stablecoins pegged to the U.S. dollar could strengthen the currency’s position in the global market, but this requires the “urgent” development and establishment of government standards for these kinds of assets.
Stellar Development Foundation CEO Denelle Dixon discussed with Bloomberg reporters the prospects for crypto regulation in the U.S. In her opinion, stablecoins can strengthen the position of the U.S. dollar in the global financial market.
Dixon expressed the need for clarity in the regulation of stablecoins tied to the U.S. dollar because the industry needs to develop, and there’s simply no other option to provide it. In her view, the government’s desire to “set the standards” should get a new push to get a regulatory framework passed through Congress as soon as possible.
“If we don’t do something in the U.S., we’re going to be in this bifurcated world where we have legislation outside the U.S. that’s friendlier to crypto. There will still be the issue that U.S. consumers will want to leverage this technology,” Dixon argues.
She said the focus of regulators should be on the utility and value of stablecoins to users, not on the technological aspect, which the government heavily debates. “Stop talking about the technology and start demonstrating the utility,” Dixon added.
The stablecoin market has a current cap of more than $132 billion, and the value of the vast majority of coins is pegged to the dollar. That’s why Dixon insists that stablecoins must be regulated and accepted in America. In her opinion, by doing so, the U.S. dollar will be able to retain and strengthen its position as an international currency.
Earlier, representatives of the U.S. Department of the Treasury came to the conclusion that stablecoins are a threat to the country’s financial stability, insisting on the issue of CBDCs. However, other government organizations believe that the release of the state digital currency will not only not strengthen the dollar’s international status, but also threaten the privacy of the country’s citizens. As for U.S. users, they consider stablecoins a more attractive alternative to CBDCs.
