Former Speaker of the U.S. House of Representatives Paul Ryan pointed out that U.S. implementation of stablecoins backed by the U.S. dollar “couldn’t be more timely” as China continues to develop its own solutions.
Stablecoins, a solution for reducing US debt
According to Ryan, stablecoins backed by the U.S. dollar could help alleviate the government debt crisis and enable the U.S. dollar to compete with the Chinese yuan, which is gaining in importance in international trade. “The U.S. is heading into a predictable but avoidable debt crisis, and dollar-backed stablecoins are one answer to keeping the dollar attractive,” he argued.
Maintaining the dominance of the US dollar
Ryan pointed out that the $162 billion stablecoin market already provides a huge source of demand for US Treasuries, and that its role in preserving the dollar’s dominance “couldn’t be more timely”. This would enable “cheap and reliable funding for budget spending” on the rails of blockchain, helping the US dollar maintain its “substantial influence over the global financial system”.
Catching up with China
Ryan noted that China is increasingly integrating the Chinese yuan into various digital infrastructure investment platforms in emerging markets, and that the U.S. must now find its own solution before it’s too late. “The U.S. cannot afford to remain passive while its biggest international competitor exploits latent demand for a secure and convenient digital currency.”
