Call to the US: Use stablecoins in confrontation with China
Date: 2024-06-17 Author: Henry Casey Categories: IN WORLD
Paul Ryan, former Speaker of the US House of Representatives and an influential Republican politician, called on the US government to speed up the adoption of legislative measures regulating stablecoins. In an article for the Wall Street Journal (WSJ), he emphasized the need to use these digital assets to strengthen the US economic position and counter financial challenges from China.
Paul Ryan's position
Paul Ryan noted that stablecoins could play a key role in increasing the attractiveness of US debt, which has recently fallen out of favor among investors. In his opinion, stablecoins will help attract more investment into the American economy and improve its competitiveness in the global market.
Confrontation with China
Ryan expressed concern about China's digital finance activity. He pointed to the launch of the electronic yuan (e-yuan), which is already in active use, including the first foreign financial institution, HSBC China, providing services through the digital asset. Ryan believes the US cannot afford to sit back while China exploits latent demand for secure and convenient digital money to weaken the US dollar.
The politician emphasized that China, by promoting the electronic yuan, encourages other countries to conduct financial transactions outside the dollar system, which weakens the US national currency. He is confident that the promotion of stablecoins at the legislative level will partially solve problems with public debt and increase the attractiveness of the dollar in the international arena.
Legalization of stablecoins
Ryan calls on the US government to actively promote stablecoins, which, in his opinion, can become an effective tool in the struggle for economic leadership. He believes dollar-backed stablecoins could make the U.S. currency more attractive for international transactions and investments.
It is worth noting that Paul Ryan opposed the creation of an electronic dollar in the United States. In May 2024, the House of Representatives approved the Anti-Central Bank Digital Currency (CBDC) Oversight Bill, which aims to prohibit the US Federal Reserve from advancing initiatives to issue this means of payment.
China and digital finance
Meanwhile, in China, authorities have launched an investigation into Yao Qiang, a blockchain proponent and author of the digital yuan project. It is under investigation by the Communist Party's Central Committee, highlighting the complexity and controversy of digital finance development even in countries that are actively promoting it.
Paul Ryan's call for stablecoins as a tool to strengthen the US economic position and counter China underscores the importance of digital assets in the modern financial system. The promotion and legalization of stablecoins could be a key step in ensuring the stability and competitiveness of the American economy on the global stage.
