Stablecoins pegged to the U.S. dollar could ease the government’s debt crisis and help the country’s dollar keep pace with China’s yuan – which flexes its muscles in international trade, a former House of Representatives speaker says .
“The United States is heading toward a predictable but avoidable debt crisis,” Paul D. Ryan said in a June 13 Wall Street Journal op-ed, and dollar-backed stablecoins are “one solution” to maintaining debt crisis. lure of the dollar.
Ryan served as the 54th Speaker of the United States House of Representatives from 2015 to 2019. The Speaker of the House is considered one of the most powerful positions in American politics, with the ability to shape the legislative agenda.
“There would be an immediate and lasting increase in demand for U.S. debt, which would reduce the risk of a failed debt auction and an accompanying crisis,” said Ryan, who is now board member of cryptocurrency-focused venture capital. business paradigm. .
He pointed out that the $162 billion stablecoin market is already a huge source of demand for U.S. Treasuries and that its role in maintaining dollar dominance “could not be more appropriate.
It enables “reliable and cheap financing of financial expenses” on blockchain tracks, which could help the US dollar maintain its “significant influence on the global financial system”.
He noted that China is working to integrate the Chinese yuan into various digital infrastructure investment platforms in many emerging markets, and that the United States must now find its own solution before it is too late.
“The United States cannot stand idly by while its largest international competitor exploits latent demand for safe and convenient digital money. »
“Dollar-backed stablecoins provide demand for U.S. government debt and a way to keep pace with China.”
Ryan said the massive regulatory framework for stablecoins already has bipartisan support in Congress, which could help “dramatically expand the use of digital dollars at a critical time.”
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The opinion piece received praise from several industry leaders, including Emin Gün Serer, CEO of Ava Labs.
“Stablecoins are one of the best things you can get from cryptocurrencies, and they help maintain dollar dominance around the world,” Gün Sirer posted on X.
However, Adam Gladstein, director of strategy at the Human Rights Foundation, said the increased use of stablecoins would continue to “perpetuate and strengthen” the same financial system that Bitcoin “subverts and replaces.”
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