During the hearing in the Congress, where lawmakers discussed the use of stablecoins for payments and the possible consequences of introducing a digital dollar, French Hill said that stabiboons are able to modernize the US payment infrastructure and expand people’s access to the financial services of unprofitable government intervention. The congressman believes that stabiblcoins strengthen the position of the dollar and simplify international transactions, allowing them to carry out them faster and cheaper.
“Every day with stablecoins, billions of dollars are made. Stebblecoins simplify cross -border payments and commercial transactions, providing people with access to digital financial instruments, ”said French Hill.
The Committee on Financial Services of the House of Representatives has been working on the legislation on stablecoins since 2022. Hill insists that a legal framework is more likely to be created for stablecoins, which will enhance the influence of these coins on international finances and at the same time strengthen the dominance of the dollar as the main world reserve currency.
Hill also spoke about the digital currency of the Central Bank (CBDC). Unlike stablecoins, it can undermine the competitive advantage of the dollar due to centralized control by the US Federal Reserve (Fed), the congressman said. He fears that the digital dollar controlled by the government will make the Fed direct business a direct competitor and interfere with the progress, which is achieved by the issuers of stablecoins. Instead of strengthening the dollar, CBDC can suppress competition, jeopardize the confidentiality of citizens of the country and weaken the role of the US banking system.
In 2023, congressmen from the Republican Party proposed depriving the US Securities and Exchange Commission (SEC) of the right to supervise stablecoins in order to transfer these powers to federal and local banking regulators, as well as credit unions.
Source: Bits
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