In a compelling two-minute video released by Circle, the CEO, Jeremy Allaire, emphasized the urgency for Congress to regulate stablecoins, warning that the United States dollar’s status as a global reserve currency could be in jeopardy.
Allaire’s call for action coincided with the reintroduction of bipartisan legislation specifically addressing digital assets to Congress, a bill that had initially been tabled over a year ago in June 2022.
Allaire highlighted the increasing competition faced by the US dollar, particularly from foreign digital currencies, which pose a significant threat to its dominance. He posed a critical question: Will global commerce transpire using digital dollars, euros, or yuan? Allaire even suggested that stablecoins could potentially boost the adoption and use of the Chinese yuan, underscoring the need for swift regulation.
Expounding on the need for stablecoin regulation, Allaire argued that cryptocurrencies will fundamentally transform payment methods.
With traditional financial transactions often taking days to process and associated fees amounting to a staggering “trillion-dollar tax on the global economy,” Allaire asserted that crypto will revolutionize the way people pay for goods and services. He predicted that billions of individuals will embrace cryptocurrencies due to their efficiency and cost-effectiveness.
The stakes are high, and Allaire’s impassioned plea underscores the critical choice that the United States faces. The nation must decide whether it wants to retain the US dollar as the bedrock of digital currency on the internet or cede this position to other countries.
Also Read: Circle CEO Suggests Yuan-Backed Stablecoins for China
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