Bringing the dollar back to health. Against all appearances, the US government should not be wary of stablecoinsbut rather embrace them. That’s what the former head of Binance US thinks, Brian Brooks. Now head of the investment fund Valor CapitalBrooks believes the Biden administration is making a mistake by cracking down on stablecoins rather than embracing them.
An asset rather than a threat to the dollar?
Crypto aversion may have clouded US leaders’ vision of the stablecoins. While stablecoins do indeed use the blockchain to function, they are still only a small part of the value chain. digital version of the dollar. And it could complement current uses, or even reinforce them. the democratization of the sacrosanct greenback just as it was beginning to show signs of weakness.
At a time when the BRICS are talking about create their own currency and where countries all over the world are tending to de-dollarize. stablecoins could be considered lifeline. This new technology, straight out of the blockchain, could provide the American government with definite support. The U.S. government, however, is having none of it.
Recently, Brian Brooks expressed on this thorny subject on the CNBC TV channel. Visit stablecoinsThese are crypto assets whose price is indexed to the value of a fiat currency. In this case, the majority of them are based on the US dollar.
For Brooks, the US government is on the wrong track in cracking down so severely on the emergence of stablecoins, out of fear that these currencies will jeopardize the financial system. After all, behind Tether’s USDT and Circle’s USDC, the underlying currency is the dollar. Real dollars held in the reserves of the entities issuing these currencies.
« If only the government would create the framework [législatif] allowing the dollar to secure stablecoins in a regulated way, demand would blossom. »
Brian Brooks
Stablecoins to democratize the dollar abroad
« The demand [pour les stablecoins] is a way to put the dollar front and center and make it relevant again at a time when governments around the world are looking to decouple from the dollar. »
Brian Brooks
For Brooks, many countries in the throes of all-consuming hyperinflation are currently looking for a way out of their monetary problems. However, traditional financial means do not always meet their needs. Opening a bank account in dollars is sometimes a complex, if not impossible, maneuver, which creates numerous obstacles to adoption.
Via a stablecoin in dollarthese complex processes are short-circuited and could suddenly make it accessible to entire populations. And it is precisely in the interest of the American government to allow these bridges at a time when its hegemony is threatened more than ever.
« This is a very important political issue.(…) It has nothing to do with crypto, but rather with the role of the United States within the financial system [mondial]. «
Brian Brooks
The stakes are high, because in this world, money rules everything. The power of USA relies on its dollar and dominance throughout the world. A dominance that today questioned by the BRICS, which account for 40% of the world’s population. China itself has been taking steps for years to de-dollarize.
In this context, stablecoins represent a tool that the United States would be foolish not to use to its advantage. But obviously, stuck in their ideals, politicians don’t seem to see it that way. Democratic Party representative Maxine Waters recently announced that she felt « deeply concerned by the risk represented by the emergence of stablecoins, such as Paypal’s PYUSDT.
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