Circle CEO Jeremy Allaire said that the US Congress should not miss the opportunity to use the stablecoin bill to strengthen the competitiveness and security of the dollar.
In an April 25 Twitter thread, Allaire noted that the previous design of the stablecoin account included provisions that would bolster the resilience of the US dollar. In his view, the digital dollar could enhance the US’s ability to cope with increasing global competitive threats.
Allaire said:
“The earlier draft contained key provisions that would also support ongoing research into possible upgrades to central bank core infrastructure, which would also strengthen the resilience of the US dollar, and be complementary to private sector digital dollar innovation.”
He further pointed out that:
“At a time when there are mounting threats of de-dollarization, where the world is questioning the strength of the US creditworthiness, an act of dollar security and competitiveness is vital.”
Previously the CEO of Circle said the new stablecoin account could be crucial for the future of the US dollar. He believes there should be “bipartisan support for laws ensuring that digital dollars on the internet are safely spent, supported and managed.”
De-dollarization threat is on the rise
Several countries have stepped up efforts to de-dollarize the dollar, with many countries refraining from using the US dollar in trade agreements. For context, reports emerged that the Chinese Yuan replaced the US Dollar as the most traded currency in Russia in February.
Meanwhile, the BRICS countries – Brazil, Russia, India, China and South Africa – are reportedly working on a new currency to reduce their reliance on the US dollar.
After the US imposed sanctions on Russia last year, countries around the world accused the West of weaponizing the dollar. Since then, many of these countries have taken measures that could help them avoid these sanctions.
In an April 17 speech, Christine Lagarde, president of the European Central Bank (ECB), warned that some countries have made greater use of alternatives to major traditional currencies for billing international trade.
Lagarde added that these changes suggest that the reserve currency status of the US dollar and euro “should no longer be taken for granted”.
Post-US Congress Can Use Stablecoin Bills to Bolster Dollar Competitiveness: Circle CEO first appeared on CryptoSlate.
