Heath Tarbert said stablecoins could modernize the US financial system, strengthen the dollar, and make payments more efficient for businesses and consumers. However, these benefits can only be realized if laws are passed to protect consumers.
According to Tarbert, stablecoins are becoming increasingly important for making payments, settlements, remittances and even sending humanitarian aid. Thus, the UN used stablecoins to provide assistance to Ukrainian refugees, Tarbert noted. The proliferation of stablecoins proves their practical benefits, since their use allows for fast and cost-effective transfers around the world, the former CFTC chairman noted.
He added that stablecoins also reduce transaction fees, which is especially important for working citizens. Tarbert contrasted stablecoins with traditional bank transfers with high fees and multi-day delays. Tarbert believes that stablecoin legislation should reflect risk management and outline the security requirements for crypto assets that issuers must comply with. Reporting standards should also be prescribed to increase business transparency. Without regulation, stablecoins could have a major impact on U.S. financial markets and the broader economy, Tarbert warned.
Circle’s legal counsel also touched on the topic of central bank digital currencies, noting that Russia and China are actively working on this. Tarbert is convinced that the digital ruble and digital yuan could undermine the dollar’s status as the world’s reserve currency. Therefore, if a stablecoin law is passed in the US, it will maintain the international dominance of the dollar.
As a reminder, Tarbert assumed the position of Circle’s general counsel in June 2023. The former official has long called himself a crypto enthusiast and believes that the USDC stablecoin issued by Circle is one of the most popular regulated stablecoins.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
