Cryptocurrency Message from the Former US Speaker of the House: We Need to Compete with China!

While it has 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 pointed out the importance of adopting stablecoins to cope with the increasing burden of American debt. Ryan said a failed debt auction would “disrupt markets and seriously undermine the credibility of the United States.”

Ryan reminded that China has adopted digital dollar technology through its central bank digital currency (CBDC) called e-yuan, and HSBC China is the first foreign bank to use this currency. However, e-yuan did not gain the expected popularity in daily use.

Despite this, Ryan emphasized that the United States should not stand idle while China increases the demand for safe and convenient digital money.

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 said, "Dollar-backed stablecoins could be a solution."

“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.