'Dollar-pegged Stablecoins Can Resolve Debt Crisis, Keep US Competitive,' Says Former House Speaker
Summary:
Former House Speaker Paul D. Ryan advocates for the use of dollar-pegged stablecoins to alleviate the US government's looming debt crisis and maintain the country's financial competitiveness against China. In an opinion piece, he claimed that these stablecoins would increase demand for US debt, reducing the risk of a failed debt auction and offering affordable, reliable fiscal financing. He added that with China investing in digital currency, utilizing stablecoins could help the US keep up with its international competitor.
Paul D. Ryan, a former Speaker of the United States House of Representatives, argues that dollar-anchored stablecoins could help alleviate the looming national debt crisis and maintain the country's financial competitiveness against China. According to Ryan's opinion piece published in the Wall Street Journal on June 13, the use of stabecoins backed by the US dollar is a practical solution to keep the American dollar appealing in the global market.
As the 54th Speaker of the House from 2015 to 2019, Ryan held a significant role in shaping the legislative landscape. In his current role as a policy council member at cryptocurrency-focused investment company Paradigm, he maintains that introducing stablecoins would cause a steady, lasting surge in demand for US debt. This, Ryan argues, would lessen the probability of an unsuccessful debt auction and a subsequent crisis.
With the current stablecoin market worth $162 billion, Ryan suggests it already presents a significant demand for U.S. Treasuries. Furthermore, he claims the timing for leveraging stablecoins to uphold the dollar's preeminence couldn't be better. These cryptocurrencies can offer affordable, dependable financing for fiscal expenditures through blockchain technology, helping the dollar retain significant sway over worldwide financial systems.
Ryan observes that China is already weaving its national currency, the yuan, into digital infrastructure systems in various emerging markets. To remain competitive, he argues, America can't stand by while its principal international rival utilizes the potential demand for secure and user-friendly digital currency. Dollar-backed stablecoins, Ryan maintains, offer a means for the US to sustain demand for national debt while keeping pace with China.
Bipartisan endorsement for a robust stablecoin regulatory system presents a critical opportunity to broaden the use of digital dollars. Ryan's perspective earned the approval of significant industry figures like Emin Gün Sirer, CEO of Ava Labs. However, not all responses were entirely positive. Adam Gladstein, Chief Strategy Officer at The Human Rights Foundation, suggested that increased stablecoin usage might only reinforce the very financial system Bitcoin seeks to overhaul and supersede.
Published At
6/17/2024 7:20:10 AM
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