In the ever-changing world of cryptos, stablecoins have made a name for themselves, arousing both interest and concern. Their main characteristic, the stability of their value, has made them attractive to investors. However, their operation, which is still little or not regulated, raises legitimate fears. Could their rise lead to the downfall of the dollar, symbol of American economic hegemony? Jeremy Allaire, CEO of Circle, one of the leaders in the stablecoin market, warns of this potential danger and calls for stricter regulation.
Regulate stablecoins to strengthen the dollar’s position
Several analysts have announced the fall of the dollar. It is true that some doubt the end of the hegemony of the American currency. For Jeremy Allaire, CEO of Circle, this is sure to happen if the stablecoin market remains unregulated or minimally regulated.
On his Twitter feed, the boss drew political attention to the possibility of this prospect. While a law on stablecoins is being studied in Congress, the official launched an appeal to parliamentarians.
He urges the latter to take into account the implications of the proposed text on the competitiveness of the American dollar. The leader of Circle wants the implementation of safeguard measures around the dollar.
Jeremy Allaire believes that these provisions are necessary. First, because of the decline in the dollar’s share of global monetary reserves. They are then given the rise of the Chinese digital yuan.
The asset not only challenges the dominance of the dollar. But it also increases the risk of seeing the American currency relegated to the background, once the BRICS currency is made official.
In view of these issues, it is therefore urgent that a complete regulatory framework be decided on regarding stablecoins. If the right arrangements are made, Jeremy Allaire sees the proposed law on this type of crypto impacting the competitiveness of the dollar. This, by strengthening the position of the asset as a global reserve currency.
The Circle boss’ call is potentially a lobbying stunt to influence lawmakers on stablecoin regulation. We know that Circle and Tether invest significant resources to promote stablecoins to politicians.
With regard to the dollar in particular, some believe that its fate is sealed. No offense to those who cry out for the conspiracy of certain countries against the United States of America and their famous currency.
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