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Opinion: stablecoins will solve the problem of the US national debt

Forklog / 17.06.2024 / 14:47
Opinion: stablecoins will solve the problem of the US national debt

The use of dollar-linked stablecoins will help maintain the attractiveness of the US currency and mitigate the problem of growing government debt. This was stated by former Speaker of the House of Representatives of the United States Congress Paul Ryan.

In an article for the WSJ, the politician noted that the development of the "stable coins" market could become a source of demand for United States government bonds.

"If other countries manage to strengthen the influence of their currencies by getting rid of Treasury debt, the United States will have to find new ways to make the dollar more attractive. One of the answers is stablecoins based on it," Ryan wrote.

He recalled that China has implemented a CBDC in the form of a digital yuan and is "increasingly looking for payment options outside the dollar system."

"The United States cannot afford to sit idly by as its largest international competitor exploits the latent demand for secure and convenient digital money," Ryan believes.

However, he is confident that the United States should not go down the path of issuing a CBDC. In his opinion, stablecoins based on public permissionless blockchains "combine deeply American values of freedom and openness."

The politician did not specify which coins were being promoted, but he was supported by Tether CEO Paolo Ardoino. He noted that more than 300 million people around the world use USDT as a digital dollar.

\"Stablecoins backed by dollars provide demand for U.S. public debt\"$USDt is being used by more than 300M people across the world as the digital dollar, providing a lifeline utility to entire communities in developing countries.
These people are underserved by the banking…

— Paolo Ardoino 🤖🍐 (@paoloardoino) June 14, 2024

"By ensuring the stability of the dollar in emerging markets with the help of a stablecoin, Tether is one of the three largest global buyers of short-term US Treasury bills and in the top 20 of the overall rating," the head of the company stressed.

At the time of writing, the total market volume of "stable coins" is almost $162 billion (CoinGecko). USDT dominates with $112.5 billion.

https://forklog.com/exclusive/gosdolg-ssha-videli-kak-na-etot-vopros-otvechaet-rynok-stejblkoinov

Recall that analysts at Deutsche Bank Research, based on the results of the study, admitted that most of the existing stablecoins are doomed to lose their binding and disappear.

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