While cryptocurrency policies have become an important agenda item in the 2024 presidential race, the stablecoin competition between the USA and China has also accelerated.
Former House of Representatives Speaker Paul Ryan made an important call to strengthen the USA’s place in this competition.
Ryan, who currently serves on the Policy Council of crypto-focused venture capital firm Paradigm, stressed to lawmakers in Washington the need for “robust and predictable stablecoin regulation” in the US.
In his article published in the Wall Street Journal, Ryan wrote that to cope with the increasing burden of American debt stablecoins He drew attention to the importance of adoption. Ryan stated that a failed debt auction would “disrupt markets and seriously undermine the credibility of the United States.”
Digital currency competition between the USA and China
Ryan, China’s e-yuan central bank digital currency (CBDC) He reminded that it adopted digital dollar technology through and HSBC China was the first foreign bank to use this currency. However, e-yuan did not gain the expected popularity in daily use.
Despite this, Ryan said China is increasing the demand for safe and convenient digital money. of the USA He emphasized that he should not remain idle.
Ryan said countries like China and Saudi Arabia, although historically large buyers of American debt, are increasingly looking for payment options outside the dollar system. In this context, Ryan, “Dollar-backed stablecoins could be a solution” said.
“Unlike China’s digital financial infrastructure, dollar-backed stablecoins issued on public and permissionless blockchains are compatible with American values like freedom,” Ryan said, taking care not to support a similar central bank digital currency in the United States. However, Ryan did not provide details on which stablecoins should be incentivized.
Finally, Ryan called for a bipartisan effort in Congress to create a solid and predictable regulatory framework for stablecoins. “In an election year, despite all the political wrangling, we really need a success,” he wrote.