Stablecoins will help the US keep up with China: former House Speaker

A U.S. dollar-pegged stablecoin could ease the government's debt crisis and help the country's dollar keep pace with China's yuan — which is flexing its muscle in global trade, a former House speaker said.

In a June 13 Wall Street Journal opinion piece, Paul D. Ryan argued that “the U.S. is headed for a predictable but avoidable debt crisis” and that dollar-backed stablecoins are “one answer” to making the dollar attractive.

Ryan served as the 54th Speaker of the United States House of Representatives from 2015-2019. 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 will be a sustained increase in demand for US debt right now,” said Ryan, who currently serves on the policy council of cryptocurrency-focused venture capital firm Paradigm. .

The $162 billion stablecoin market already provides a major source of demand for US Treasuries, and his role in maintaining the dollar's dominance “cannot be temporary,” he stressed.

Blockchain allows for “cheaper and reliable financing of fiscal expenditures” on railroads.

He said that China is integrating the Chinese yuan into various emerging markets in various digital infrastructure investment platforms, and that the US must find its own solution before it is too late.

“The United States cannot sit idly by as its largest global competitor brings the need for a secure and convenient digital currency.”

“Stablecoins provide a way to meet the demand for dollar-backed US public debt and keep pace with China.”

Ryan already has bipartisan support in Congress for Statcoins' formidable regulatory framework, which will help “significantly expand the use of digital dollars at a critical time,” he said.

Related: ‘Bearing Stables' Are Not Money or Stable Coins: Agora Van Eck

The comment section received praise from several industry leaders, including Emin Gün Sirer, CEO of Ava Labs.

“Stablecoins are one of the best things to come out of crypto, and they help maintain the dominance of the dollar around the world,” Gunn Sr. posted to X.

However, Adam Gladstein, chief strategy officer at the Human Rights Foundation, said bitcoin would “perpetuate and strengthen” the same financial system it serves to “overwrite and replace”.

Magazine: Unstable Coins: Devaluation, Bankruptcy and Other Risks Ahead.