Here is why the United States should adopt the stablecoins
6. September 2020
So far this year, the market size of stablecoins has more than tripled from $4.8 billion to more than $17 billion currently, much of it outside the United States, and thus beyond the reach of U.S. regulators.
As these crypto assets continue to grow, U.S. politicians will lose their hold on the dollar, especially those living in New York. Neutral infrastructure is the main attraction.
With politicized banking, the risk of censorship, the elimination of risk by disengaging from individuals with whom they disagree politically, the use of power as a tool to hedge managers‘ interests is becoming increasingly clear.
If the United States yields to the stablecoins, they increase the dominance of the dollar
Regulators should take advantage of the stablecoins to increase the dominance of the dollar.
Savers in countries experiencing inflationary periods are very attracted to crypto-dollars. They use them as a safeguard measure without the need to rely on the bank.
Venezuela is a good example, where this type of active crypto is gaining more and more ground, as a means of protection against the brutal inflation of the national currency.
Another sector that sees the benefits are those who face oppression.
According to Chainalysis, in China, Tether is more famous than Bitcoin. In addition to the digital, transactional freedom is of the utmost importance.
Regulators should be grateful that a supposed successor to the financial infrastructure is a largely American phenomenon.
In China, the financial system is highly digitalized, Stablecoins how Tether offers a fundamentally better proposition than alternatives like Alipay, or China’s digital currency, DCEP, as the bearer is not subject to the same level of surveillance.
Although the alternatives are also digital, the real reason for the appeal of crypto dollars is in receiving or sending without permission. There is hardly any need for a smartphone and an exchange.