Jeremy Allaire, CEO and co-founder of Circle, urges lawmakers to take strong action to preserve the dominance of the US dollar. In his written testimony to the U.S. House of Representatives Financial Services Committee hearing, he outlines the current situation of the dollar and offers possible solutions that can help the currency stay vanguard of the global financial system.
Defend the primacy of the US dollar
As dedollarization gains traction, many analysts are hoping the tide will turn and the dollar will retain its hegemony. But for that, the legislators will have to do their part according to Jeremy Allaire. The CEO of Circle, the American company issuing the popular stablecoin USDC is urging lawmakers to defend the dominance of the US dollar.
Mr Allaire states in his written testimony that ”the dollar is at a crossroads”. The dollar is at a turning point according to him and strong decisions must be taken in order to maintain the competitiveness of the currency on a global scale.
Jeremy Allaire argues that “geoeconomic and geopolitical blocs” are forming, advancing and exerting remarkable pressure on the dollar-based global financial system. A situation that could ultimately undermine the dominance of the dollar.
“The primacy of the dollar allows the United States to withstand economic and financial shocks and to exercise global influence far more than other countries,” declared Jeremy Allaire. The Circle CEO and co-founder also highlighted China’s progress with its digital yuan. He believes that a stablecoin bill would allow the dollar to retain its top spot in the global financial system.
Legislation on stablecoins: a “national priority”
Jeremy Allaire claims that “other nations are enacting laws to regulate the use” of US dollar stablecoins. He laments the lack of established standards in the United States to govern the activity of state and federally licensed transmitters.
For him, passing stablecoin legislation should be a “national priority.” The entrepreneur finally urged lawmakers to provide criminal penalties to punish companies that issue fake digital dollars.
As a reminder, US lawmakers gave the regulation of payment stablecoins a serious boost last April. However, no remarkable progress can be reported since then. Will Jeremy Allaire be able to move the lines with his testimony?
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