Circle’s CEO, Jeremy Allaire, has issued a warning that the United States dollar’s status as a global reserve currency could be in jeopardy if Congress fails to swiftly regulate stablecoins.
In a brief video released by Circle on July 13, Allaire directed his message towards lawmakers, emphasizing the need for action.
This plea coincides with the reintroduction of bipartisan legislation specifically focused on digital assets to Congress on July 12.
Originally proposed in June 2022, the bill was temporarily shelved but has now resurfaced.
Allaire drew attention to the escalating competition posed by foreign digital currencies, asserting that the dollar’s dominance is at stake.
Allaire went on to raise a pivotal question: Will global commerce transpire in digital dollars, digital euros, or digital yuan? He further speculated that China could leverage stablecoins to boost the adoption and utilization of the yuan.
Consequently, he urged the United States to make a choice—either assert the dollar as the bedrock of online currency or relinquish that role to other nations.
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To maintain the dollar’s position as the world’s reserve currency and to continue leading the global economy in the years ahead, Allaire contended that immediate steps must be taken to instill trust in digital dollars and regulate stablecoins.
Allaire argued that cryptocurrencies will fundamentally revolutionize payment methods, citing the inefficiencies of traditional financial transactions that take days to process and accumulate substantial fees, which he likened to a trillion-dollar burden on the global economy.
Allaire found support in Mike Novogratz, the founder of crypto investment firm Galaxy Digital.
Novogratz posed a rhetorical question to his Twitter followers on July 13, inquiring whether they would prefer owning a stablecoin that offers higher interest rates over a bank that resembles a hedge fund.
Novogratz unequivocally expressed his hope that U.S. lawmakers would endorse the development of well-regulated stablecoins rather than impede their progress.
In conclusion, Circle’s CEO, Jeremy Allaire, and crypto advocate Mike Novogratz have urged Congress to expedite the regulation of stablecoins to safeguard the United States dollar’s supremacy as a global reserve currency.
The growing influence of foreign digital currencies and the transformative potential of cryptocurrencies necessitate proactive measures to foster trust and ensure the dollar’s continued prominence in the digital era.
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